Baron or Omar, please consider the request I have made before, outlined in post #1826. This is not pander or personal agenda. When I evaluate more established companies, in addition to growth potential and financial position, I also look at ratios that indicate how a company manages it's resources - things like return on equity & assets, profit margin. How fast revenues are rising in comparison tohow fast expenses are rising, etc. Legitimate Due Diligence questions.
My decision to sell before was difficult since there were several disturbing issues coming up while the Big Foot operation was looking more and more promissing (info from OLEX releases, Larry S's posts, and info from OMAR (E-mail & phone). I paid a serious commission in a relative sence to exit. You may have noticed, I posted earlier today inquiring from others how to buy penny stocks inexpensively. I looks like finally the promised production is about to come.
But until I can get an answer to a question that was designed to give a feel for: how well management stewards resourses, the wisdom of management decisions, and wether or not there is some consideration for shareholder value, I can't re-enter no matter how low the price is. I wish I could check the above balance sheet rations, plus things like price/sales, price/cash flow, but that can't happen with a development stage company, so all I can do is ask questions like this, and if the answer is viable for me, wait for the oil to manifest itself in terms of revenue from operations on a statement.
You mention current issues. Mr Timmins name has appeared in several recent statements. Since he was in a senior position when several of the transactions were made, it is a current issue because the management is current, and my conjecture is that good decisions will follow a trend of good decisions, bad will follow bad.
I beleive this is a rational and reasonable request. For your convenience, I am cutting and pasting the question from my old post.
I recently requested that you answer the post, but since I re-read it, I saw that the line of inquiry I refered to above was from the middle of a post, so here is the relevent postion. My appologies if I was unclear when I re-requested an answer.
If you are not going to answer, could you please extend the curtesy of saying so & possibly why. Sincerely, Scott H. Davis.
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If shares are issued for reasons that add real value to a company can be a good business decision. Those issued for paper assets, of for
excessive compensation packages are material share dilution and a source of great shareholder dissatisfaction and loss of investment dollars (see the INCE thread from Feb 97 to June, or QDRX for example, where major issuance of paper preceeded a major share price collapse, and in both cases, somehow the Reg S or healily discounted onvertables hit the market just as the company issued encouraging but vague releases, and company IR spoke glowingly about the good news just around the corner)
So on the subject of increasing shares, could you please address the issue of value? It would be great if you could recap major issuences of OLEX stock, showing what material value they have added to shareholders? That would address the issue at the heart of the # of shares. PLAT has issued shares to but other software companies, and as a result has put together a growing integrated suite of software products for example. A company issues shares that add 10% to the # of shares, but the company add 25% more useable assets has done it's shareholders a favor. Pretty simple equasion. So recound the shares and the value they added (such as payments from a lease deal), and we can make an asessment of the benefit of the additional shares.
NOTE: I am NOT accusing OLEX management of either excesive compensation or untoward issuences. What I'm refering to are paterns that many of us are painfully aware of, usually via the school of hard knocks.
(end of paste from #1826) |
