Yes and Yes. First, MIOA received 1.5 million dollars for 4.7 million shares of stock to be given to the overseas investors. Imagine you are Morrell. You give 4.7 million shares of stock to me. I say thanks and then give you 1.5 million dollars. I paid you $0.32 per share------4,500,000 shares/$1,500,000 equals .3191489 or .32 or 32 cents, or MIOA just sold the overseas investors 4.7 million shares of stock for 32 cents each, or a total of 1.5 million dollars. Got it? If the overseas investors were to settle, do you think they would pay $3.13 per share when the stock is at 2 1/4? That would be dumb. The concern is: what happens to MIOA stock if they sell it all when it is delivered? They get a profit of almost $2.00/share(assuming they sell at $2.32), which is equal to 9.4 million dollars(4.7 million shares X 2.00 = 9.4 million dollars). Imagine what that could do to this stock. Then imagine MIOA at less than a dollar with 10 million shares outstanding and no new growth since the acquisition of FPII!!! A much harder sell to public than the prospects back in January when the stock hit over $4, with 1.5 million shares outstanding and a new start. You can't deny that the earnings have been bogus at best knowing that they sold a cath lab to make a profit 1st quarter and have been(and will continue) using settlement proceeds to make a profit since then. How else can you explain the revenues. Look at their 10-Q, they don't even explain exactly where it came from. Ask MIOA, Morrell, or the SEC, they will tell you.
Second, I cleaned house on ABTX for my profits to offset my losses in MIOA. Back in April, things look potentially good for both MIOA and ABTX. Well, you can guess which one has been better. I suggested that stock to you guys when it was about 25% lower than it is right now. I tell you to go with ABTX in the future, but right now is a volatile time in the markets in general and, for ABTX, a historically low time of year. Watch and do your own research on ABTX, and get in sometime around first of calendar year. Or, you can short ABTX because it will be coming down soon(that is my bet).
Miller |
