A lot of accumulation going on here. I also have been watching this stock for months, and agree with them message boards over at RB. If you look at the recent volume, it is true the stock should have gone up, but the MM did not want it to. It does have a nice base here, and for .26-.27 a share, this is an extremely attractive, undervalued, viable company with solid management, and a solid expansion plan.
Spoke with IR people and as per shareholder letter, and it is apparent that Mr. Alvarez has a solid approach, and is putting together the right deals and the right people.
They are currently engaged in purchasing an oil and gas co. in Florida, which services Citgo stations and others, which will add $14mm to top line. Combine this with the solid approach in internet alternative lending, which has grown from $24mm in sales to $93mm in sales in 1999, and projecting $250mm in sales in '00, you can see why the accumulation is happening.
He has a $71mm tax loss carry forward which expires in 2014 to help offset expansion. He also restructured the previous debentures from being able to be exercised at any price, to being able to be converted into common stock at $3.75 a share.
Mr. Alvarez himself holds options to purchase 18mm shares at .30/share, bringing the total to app. 52% of the outstanding shares that he will control.
Shareholder equity is key here, and moving forward will be the basis for Nasdaq listing. Everything is in place to meet a listing in the not too distant future, once the MM's let this thing go.
Get in while you can still own this comapny under .30!!!! |
