Mr. Jouver, yours was an excellent post. If you are looking at this company from the vantage of the President, then you must continue on, as you say.
I am looking at the company from the perspective of a shareholder, and, IMHO, the view is not pretty; it is very up hill! I have been there, and it is no fun!
They have relatively high operating expense (considering there are almost no revenues), very little cash, and they are bartering for services with shares of stock. They are bleeding!
If they wish to remain alive, they must stop the bleeding. This means that they must sell, or close, those areas of the business that do not contribute to paying the bills. Unfortunately, it would appear there is little to sell, from the looks of the statements that were submitted. There is no revenue.
It is unlikely that they can borrow money, from any traditional source; so, they are left with the prospect of raising capital through the sale of shares, and bartering for goods and services, by exchanging shares, or warrants.
From the shareholder's viewpoint, this means that we cannot expect an appreciation in per share value, so long as there are an increasing number of shares being issued, with little or no revenues to offset the expenses.
If I could see the revenue being generated, on some moderately increasing basis, it could be said they have a chance. The numbers do not show this, after a year of work; thus, my pessimism about their future (as a shareholder).
At some point, they are going to the shareholders, to ask for approval for 200,000,000 authorized shares. The shareholders will balk, vote no, and they will be forced to do a 10 to 1 reverse split, which will give them a temporary increase in per share value, and the authorization to issue 90,000,000 more shares. This is survival! You have to do, what you have to do. It may not be nice, but you will continue on.
These are just my ideas, and opinions, from reading the report. I would not invest, nor would I chase the occasional price fluctuations. There are many hundreds of other stocks, with really good financials, where your funds are better spent.
My personal advice is not to invest in penny stocks, unless you are a trader.
Good Luck! |
