Paul,
Thanks for sharing information with us.
It seemed that you left the company, can you share with us the reason of leaving, if you don't mind? Also I noticed that your messages in this thread before were open-minded and aggressive. Are you an official promotor of the company? Meaning that you were employed by EXOR to promote its share or you were doing that by your own will.
I don't know whether we are talking about the same group of people who are going to buy the controlling block of the company. As far as the group I knew, they are only speculators and market makers to make money from the share market, they knew not much about Software Business. They would not be able or interested in running the company or the business. And furthermore, I do not believe they have that sort of fund (say a fresh $500,000 cash injection into the company as seed capital) that you expect to promote the company products. I would guess their logic was ;
1. They already lost some money because they bought this stock at around 40 cents, they have no patience to wait for it to come back again;
2. They heard this company was turning around slowly so they felt that could be a good story to promote this stock;
3. Some insiders or existing shareholders were even more eager to get rid of the share at a low price.
So to summarize, there could be a real opportunity as you said in your last message that it was worth to take the risk to bet on such low price, or to the other extreme, that could be the last nail of the coffin because another STOCK player came in to play around a heavily injured COMPANY. (As far as I know, the net equity of the company has once came to a point, very close to zero).
I do not have any insider's news, this is purely an information from outsider : If the existing controlling party knows this is a chance for the company to turnaround, they will either sell the controlling block to some guys with deep pockets so they can finish another critical process (product marketing as you said) or they should let everybody knows that the company has turned around and tried to raise some more money from the public to finance the second stage by their own. If they are not doing either one, we should be skeptical.
Paul, if you do not mind, can you give me some hinds to the following questions :
1. You seemed to indicate that they still maintain the team of some good players, who are they? Software development, sales team or what? Can you describe a little bit more on that?
2. I read in some previous messages, they said the "indsiders" only owned about 10% of the company, how can they sell the controlling block?
3. You claimed one of the problem they have is "too many outstanding share floated", I got the information that they only have around 12-14 million shares around that actually is talking about a market cap of CAD 1.?? million, why it would be a problem.
4. You claimed they have a good product line, but overall, the contraction business in Canada is not that great now that should affect their sales. Also, this is a limited market for such product line, if they use the same amount of effort to develop a wider market application (such as production control system which can be used in Asia), that would be much potential. BTW, do they develop all the program in-house, or do they own the source code?
I really appreciate if you do not mind giving me some answers on that.
Thanks in advance.
CH |
