Richard, I don't think I'm being too hard on TFRY at all - just trying to do a reasonable analysis of this company's present situation. Believe me when I say I have total empathy with Edward Kelly and his situation. I have about the same job he does and know that it isn't easy. His insistence to be successful rather than go "belly up" is to be admired. I fully understand 18-20 hour days for six and seven days a week that he must be working. If it fails, it probably won't be for lack of trying.
In my earlier post, I didn't have time to address my suspicions of the price drops we have seen lately. Going beyond the 10QSB, most telling is the Form S-8 filed on 7/5/96. That form describes 5,620,406 shares that had recently been issued (sold) for 5-cents each as follows:
4,000,000 to LBI Group
1,000,000 to Leonard Klarich (a TFRY director)
620,406 to Robert Portman
The important thing about these 5.6 million shares is that they were unrestricted - meaning the holders could sell them immediately. Since they had just paid 5-cents each and the current price was about 30-cents each, I fully understand why they would dump them on the market immediately. I suspect that that is exactly what happened to create the selling pressure which tanked the share price. Impossible to tell if they have all been sold or whether there is more pressure to come on the price. This is the danger to these penny stocks when they continue to issue shares for every need.
One further point. They (TFRY) have about $300K cash on hand. This is about one month's operating expenses at the recent "burn rate." Furthermore, they have already issued 94-million shares and are only authorized 100-million. So, when they issue their next 6-million shares (presumably, at the same 5-cent price), they are out of options. Those 6-million will generate enough money for another month. The point being, they had better start selling those machines! Fast!
Okay, I've said enough. Let's hope everything somehow turns out right.
Al |
