Grant,
I believe that Par Chadha's main roll was the aquisition phase. I believe that for a cheap 21 million shares he has given the aquired companies an opportunity to access technology they never had before. Therefore creating unique combined products, I believe the buzz word is convergence.
The speculation rests in wether or not the technical people suceed in creating marketable equipment. After that you must have sales, manufacturing and administrative support that is capable of taking the goods and turning a profit. This seems to be Renn's area of expertise.
The negativity toward the Chada's may come from the business they are most involved with and that was the financing of the aquisitions and financial survival through the early convergence/design phase. There are people with similar expertise that are much like deep pocket speculators. They can see a profit within a deal, and take advantage of that. A recent article on spin down of convertible share companies and the danger, explains the strategy in part. Those shares are simply financing, they are debt. But what bank would give you a loan to build a Gigamux 2 years ago? "Yes Mr. Bank President, thats right there is no market today, but it's gonna be huge one day!" So you get loans with shares, this is the essence of the stock market, you also buy executives, engineers and buildings with it.
I'll grant that it is fair to speculate on a companies failure because of this exposure. Especially in technology. But when the speculation becomes a power play of big money and news publications, well it's money in the bank for those particpating. The articles never mention the technology, just third parties, somehow related to a piece of business Par did in the past.
It is however a reason for people not to be involved in this stock, wether what they say is fact or fantasy some people will just stay away "just in case". That is what has helped keep this stock down. The change in the whole story will be succesful sales. Not to say that will happen but it would wash away a lot of the dirt, and it's the only reason I still speculate here.
Scott |
