Well, I have not been able to press Mike about these deals, but I will tell you that it would be extremely important for us to understand the details. In other words, exactly how does the stock get distributed and in what time frame. As I said before, either MIOA is extremely optimistic for revenues in the next three years or they signed a deal that they can't possibly do in order to avoid giving stock away later. Bottom line, there will be slow dilution over the years from these deals. I expected that which is why I was so opposed to giving them 60 million more shares to work with. It would have been nice to see them try to work out deals with what they had and prove some management skills to us. If they want to acquire, without any money, they have to work out stock deals. It is the only way. I have no choice( I guess I could totally sell and I may if ABTX retreats to a cheaper price) but to be behind this management team now ;I am confident that these acquisitions will be very beneficial. Doing some math and multiplying out-these deal bring in 1.3 million in revenues and 350,000 profit annually. Take ten more deals and you have 13 million in revs with 3,500,000 in profits and handing out about 15 milliuon shares over time. At first glance this may look bad, but you have to take into account the earn-out deal and the fact that by the time MIOA makes those deals it would be worth alot more than 1.75. The margin is great for profit. YOU HAVE TO BE PLEASED ABOUT GROWTH. WHAT ELSE IS PLEASING NOW?
As far as the short position goes, I may look into it, but I could care less. You can short anything anywhere, anytime. Heck, people are shorting Motorola and Coke, so why should MIOA be any different. My point here is that shorts only get burned when the stock goes up, which obviously we all want. If you are not willing to hold on while this stock sits here, waiting for the big jump, then find another mover now like ABTX and get out of here. BUT, you may kick yourself if you did have time to wait and you watch triple digit jumps like I have seen in ABTX in the past few months. Our loss is when the stock goes down; their loss is when the stock goes up, plain and simple. They are winning right now, because MIOA is in an industry that has to have much acquisition to cover fixed expenses, ands are a stock that has to prove itself more than a new company-they pissed alot of people off last year that were supporters. If you bite the hand that feeds you...Those people need to be convinced big time that this stock can be a worthwhile investment. Other new players will be less critical because they were not burned by a 20-1 stock reverse split.
Be patient and support MIOA's plan for acquisitions. It will be the only way to gain more investors since they are not impressed with the gains so far. To date, unrealized gain in revenues has been $7.5 million(damadian deal, addition of another physician, and this week;'s dealing). Not bad, but keep 'em coming...
Miller |
