Ron,
You should ask Mr. Slowey if SALV is making any
money on the SeroStrip approval in India. That's
what counts, not approval for approvals sake.
Announcements of licensure in Romania and Kenya
mean very little. The
most interesting facet of the release today was
about assembling in the UK as a second site. Where
is the first? Why is the UK less expensive than Singapore?
Most of the sales of SALV are in Asia, so what is so
great about the UK? How will the UK/Wesley Coe site
lead to "increasing the capacity we had prior to the
cost-cutting measures of closing our Singapore plant
in October." This sentence makes no sense. Is SALV
saying that they will have more capacity than ever
before, or that they are just getting back to where they
were when they shut the Singapore facility down? It is not
cheaper in the UK than Singapore, so what is the
benefit? All of this ignores the pressing issue of the
reverse split. I cannot vote for it. Reverse splits,
more often than not, are a last gasp and do not have the result
hoped for, except in the very short term. It is a bright
red flag for brokers. The scenario appears to me to be
that, if the split passes, the stock will be worth
about $2.50, but only briefly. Then it will begin to decline.
SALV will sell more stock in private placements at
discounts. When that stock hits the market, as it
surely will, the stock will decline. We'll be in the same
price range as now, but will have 10 times fewer shares.
The management at SALV cannot afford to sabotage the
company to the point that it goes out of business. They are
personally liable. One of the BOD members is a partner
in the law firm that represents SALV also. These things
lead to quite a bit of exposure to the BOD and management.
Awarding themselves 1 million and 1/4 million options
when the company stock is at its lowest in history
is the epitomy of arrogance and completely disregards
the rights of the shareholders.
rl |
