Bill
I agree that this in not South Carolina, I also feel that it may be premature to venture much capital into this stock. If either of the remaining quarters of this year show an improving profit picture I will then get in for a lot more. If not I will stick with what I have in it and when and if it does turn I will be ready to get in with more.
I don't expect this to be an overnight success, anymore than I expected BNGO to be an overnight success when I got in it first last October almost a year ago, and BNGO wasn't it matched it's all time low in Jan before turning up and it didn't really take off until may of this year.
I don't know how many times I have heard people say "I wished I had got in at the bottom on that one", well this is an opportunity to get in at the bottom. Remember though when buying at the bottom you are risking that it is not the bottom, but just a bounce on the way down. With the Warrants presently at or below 25 cents the potential rewards are huge, around 2400 percent, or more if you can get in at 7/32 I doubt anyone will get in for less as the MM is well aware of the time value here (27 months). less speculative is the stock at 1 7/8 the potential of the warrants to make 2400% is for the stock at the same levels to make 600 percent. I guess most of us wish we had gotten into BNGO or BNGOW at the bottom, it is rare indeed to make a 12 bagger in year, the warrants have accomplised that, BNGO has managed a 6 bagger in the same time period, still a rare event. Holders of BNGO will probably see the 12 bagger if they got in at the bottom late last year or early this year, the warrant holders who got in at 7/32 - 9/32 will be looking at a 36 bagger in one year.
While the rewards here are potentially less, they are still overwhelming should every thing work.
Problems:
New unproved venture. (routes)
Political problems, (Peru) possibly any other country.
Exchange rates, (minimal)
Unproven Management, (has SA experience, has apparantly survived
-----a major reversal and showes promise of recovering, seems very
-----stockholder oriented)
Somewhat obsolete product.
Plusses
Unique business plan. Can lock up the lower end of the market.
Lots of cash
Lots of inventory and much more tied up by contract.
Turn around stock (seems to have bottomed and started back up, or
-----at least stabilized)
Lucrative industry.
Nearly one hundred percent of sales moves to the gross profit line.
Very low expenses.
Risk now spread between several operational bases.
Greatly expandable.
Will soon get reading on whether it is too early or not. (earnings for
-----third quarter will tell a major tale, even 3 cents will show the
-----begining of the route system working)
No accounts receivable---cash business
Remember to while this ain't SC USA you couldn't do this in SC, not for the entrance costs you can do it here, and there is lots of compitition in the SC market for upper end locations. Here you can be profitable (very) for 50 - 100 dollars a machine a month, in SC you need at least a thousand a month/machine to break even.
This is a totally speculativer move at this point, while I brought this stock up in emails with Stephane early, and I feel the risk is worth while for me, it is a very speculative move. balanced by possible high returns in a medium term. Expect to wait as much as a year of two for full return here, if then.
Rod
Dream a little (for this one you need to be a dreamer right now) |
