Paul,
I talked to my broker Steve Felix at Bear Stearns 800-444-BEAR.
He gave me a rundown on what's going on at ALAN. The Salubre deal is going much slower than expected. Delays, delays, delays. In fact, the announcement about Salubre was only a 'marketing plan' and not a contractual arrangement to place 10,000 over 3 years. I guess we all get fooled, especially by promotors (and by liars).
They hope to start delivering at a couple hundred per month rate by the summer to Salubre, far less than the anticipated rate. If you assume 10,000 over 36 months it averages to 278/mo.
No word on revenues from Walmart locations, but assume good news there. I should think that I'll have to lower my 4 cent estimate to 1 cent based on the Salubre news that I wish I had known right from the get go.
The sage advice is still to wait for quarterly profits and a higher stock price to lower risk. Alanco has spread itself pretty thin. Imagine what it cost them to generate $600,000 in revenues in the filtration business. With more than 33 million shares outstanding, 600k amounts to only 1.8 cents/share in revenues. Not the kind of business worth writing home about.
I'm still optimistic about ALANCo, and I'm willing to buy more on signs these guys are showing an improvement in cash flow and I'm not afraid to buy crossing above $1.50/sh or above $2.00/sh with solid fundamentals on my side.
Hasn't it been great to live through this "water torture" decline from the December closing high at $2.22. The midpoint of the correction from $2.28 to $1.06 is $1.67. Volume has been heavy lately with the release of recent "news."
I heard from Steve that they report next week (April 7 - Apr 11 sometime).
Good fortune to us all!
Tim West
6:27 am, Sat Apr 5 |
