Hello, Mike. Hope you had a pleasant weekend. Before I get to the news, I have contacted one research analyst who will now keep MIOA on his screen for us. If nothing else, it makes MIOA more visible. He did tell me that he did not like reverse split stocks, but he loved turnaround stories. In addition, the stock had a value of $1 based on revenues and .30 book value while trading at nearly $2.00. Well it is down to $1.75, so it it closing in fast on $1.00 value!! Nevertheless, he did not provide me with in-depth analysis as I am sure he has better stocks to watch, but at least he is watching it.
Today's news. I need clarification on the use of pronoun it, but if it as used in the sentence ...if it obtains pre-tax profits of 14 million over the next three years.. to be MIOA, and I think it is since the new company has ytd revenues of only 700,000 and profits of 200,000, then MIOA will provide the entitled 1 million shares at that time. Of course, there may be a deal such that the new company will receive bits and pieces over the three years if MIOA attains that goal. Either MIOA has really protected itself from giving up shares(ie. they will never reach 14 mill pre tax that fast) or thwey are extremely confident that they will have over 14 million pretax accumulated by three years, which is fantastic confidence for us. Yes, it will dilute somewhat, but not immediately and as time goes by, revenues will grow with the dilution. remember, 1 million given away for 1 million revenues annually with net profit of 200,000 is translated into .20 eps annualized. This is probably the beginnin of all those situations that Paul was saying had been in progress-they just needed more shares in their hip pocket to acquire. I believe it is a great acquisition as older individuals may need pain relief not obtained by conventional methods such as over the counter NSAIDs or more potent corticosteroids given IM.
Unfortunately, our stock is slipping right now, but with acquisitions like this to come, adding revenues will bring the stock back up. I have seen ABTX acquire stunning revenues over the past few quarters that has really paid off for the stock today(last few weeks).
Miller |
