Kingfisher, thanks for the compliment. I likewise respect your desire for the company to more fully inform its shareholders, as well as the heads up for newcomers who may not know some of the history.
As to the value, beats me too.
I mainly have focused on the market cap (shares * price) as it relates to the number of employees, the growth and market share prospects for the company pertaining to the industrial health sector, and the effect of the internet wild card.
At .06-.07 a few weeks ago, the market cap was a minuscule $1.5 million which given 25-30 employees seemed very cheap at around $60,000 per employee. So, assuming I could trust the signs of growth on their website this seemed almost like a no-brainer then.
Now at a market cap of around $5 million I"m focusing more on the growth prospects and the internet site. They say they are probably the market leaders and yet only have about a 3% penetration of the 20,000 possible clients. This sounds very promising to me, especially if the margins are good (need more info on that).
I knew from talking to them about a year ago that they had some plans for the internet, but only in recent months when I called again after becoming increasingly conerned about the silence did I find out a little bit more about the plans for the site.
How do you value an internet site that has the potential to reach millions due to strong alliances and first of its kind to market? It seems to me that since DIET is probaly the leader in its niche, it very well may have good leverage in teaming up with other companies that see the potential.
Many non-reporting micros with internet presences have market caps of 10,20-50 million. $5 million in comparison sounds pretty low still to me. It's all conjecture based on the known market cap, a few numbers I was told, and the current market enthusiasm for internet products and stocks.
So, I agree. It's a guessing game. I guess we are still very much on the low side at these levels but who knows?
Market psychology can change on a dime.
You brought up an interesting issue with regard to insider information. I learned some things from calling that no shareholder would have known from the press releases. Is that insider information? Is it wrong? Are the rules less clear for non-reporting companies? I don't know--but what I have learned is it sometimes does pay to call the company and ask the questions, even though some they probably should have answered to all shareholders already.
Ted
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