Hello GBUGS!! Nice to see some optimistic KNIC shareholders!!! Your right-on, about the importance of PATIENCE!!!! Patience is what brings rewards and rewards are what brings confidence on oneself, and confidence is what allows us to take risks, without taking risks, the American Dream will always be JUST THAT, AN AMERICAN DREAM THAT NEVER BECOMES REALITY!!!. Therefore, without patience the other 4 four TRAITS are not possible, PERIOD!!!!
Well thats my motivational speech of the day. On to my thoughts on KNIC. KNIC today, announced that Bank of Boston made a $20M committment for a revolving line of credit. Thats great news because 1)they have cash to fulfill larger orders such as a $10m order from a national retailer for their jewelry line, which before, they could not fulfill.
2)They can also pay down some of their HIGH INTEREST debt which they acquired from the Georgetown Collection company.
3)They have flexibility, to build inventory and advertising levels for even higher sales of there collectibles.
4)Its a great endorsement from a notoriously conservative bank such as BankBoston. They have done their due diligence and feel good enough about KNIC's prospects to loan them up to $20M.
5)There may have been perhaps several LARGE market players out there that, given KNIC's cash position, thought that KNIC may go out and do another CONVERTIBLE DEBENTURE deal for more cash. That OBVIOUSLY won't happen, since they now have the Bank committment. I THINK KNIC'S MANAGEMENT HAS LEARNED THEIR LESSON AND THERE WILL NEVER DO ANOTHER CONV. DEBENTURE DEAL WITH THE OFFSHORE DEMONS!!
Another, very important development is that a firm called SGA GOLDSTAR came out with a raging BUY recommendation for KNIC yesterday!!! SGA has always had inpeccable timing for their recomentations. Back in May of 1996 they recommended ZITL at 13/share and the company began to make a huge Run 10 days after their recommention and eventually hit $70/share 3 months later. SGA has a HUGE subscriber base that has ready access to large amounts of $$$ to put in stocks that are about to make 10X runs. SGA has a great track record in picking these 10 baggers!! They mentioned in their KNIC write-up that their sources are saying that the Pure Energy IPO will be in October/1997 and KNIC's 38.3% stake in Pure Energy will be worth $21/share plus the core business therefore a $30/KNIC price by the Fall/1997 is not out of the question. I personallly think that Pure Energy will be worth twice that, but whom am I to say?
Regards
Juan |
