Dear Randy:
Chemtrak filed for a private placement of convertible securities to raise $7mm for working capital expenses. This is an indication of financial distress, due primarily to mismanagement or inability to capitalize upon the company's assets: i.e., their home test kits.
They need to find a marketing strategy appropriate for the product's success. I have used the product(Cholestrak), it works, but is not easy to use because of the several time-consuming steps to completion, nor inexpensive, as you've discovered already.
Call management, write management of your concerns, it is your responsibility to insist that the company's product position in the marketplace be addressed immediately. Owning a stock is not any different than owning the company.
At a $1+ per share there is not too much downside risk to the stock, and indeed, may offer an attractive opportunity for a better managed marketer of health-care products. So, figure out what you want from the company and express it. Good luck!
Yours, Terrence Von Holidae |
