TO ALL: Got this in a private message. Thought the thread should read it. Ask and received permission: The common sense of this was, in my opinion, worth sharing.
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Malcolm,
I am not much of a numbers man myself, most of the stocks I have made
good money in were "concept" stocks...stock that sold for under $5.00, had unique
patents with world-wide demand and that would benefit mankind.
Let us get to Fonar, assume the stock is selling at 2.50, they already have 1.20 in cash
per share from GE settlement, let's guess that Toshiba settlement comes to 1.40 in
cash...so now we have a stock selling for 2.50 with 2.60 in cash per share...where is
the risk??? You have all of the physical properties and patents, that the company owns
for free. I am quite sure that Fonar could get a handsome price if the company
auctioned off all its patents....
If you had a chance to buy a farm for 25,000 and you knew the old geezer who
owned it had 25,000 stashed away in a black box in the barn and you could get the
house, barn and livestock...and the spring crops already planted for 25,000....I think
you would find the money to buy it...even if you had to borrow the money....right??
I for one, don't think that Toshiba pulled a silk kimona over Damaidian's eyes!!! I
doubt this very much. Some of the posters on the thread forget that Dr.D turned down
a deal from GE for 80 million against his attorneys advice...he was under no pressure to
settle this deal since he already had a bankroll...you only make a bad deal when you
are cornered and short of cash. Toshiba, on the other hand, had a great deal to lose
besides face...they were facing triple damages and an American jury, plus a history or
selling US secrets to the Russians....So Damaidian was holding the winning hand and
the fact that settling the case out of court and not embarrassing Toshiba with the
amount of the settlement, must of cost them something...and the business of
cross-patenting, IMHO was a face saving device for Toshiba....I don't think Dr. D
gave that away for nothing.
So as far as an Investment Banker is concerned...what is the risk for them if they load
up at the stock at these risk-free levels and sell them later when this stock breaks five
and is NASDAQ listed...At the present time Fonar is not followed by any street
analysts...I assure you, this situation will change once an Investment Banker has loaded
up with two or three million shares.
As you know , Malcolm, every thing I have written is conjecture on my part, but I
think...very plausible.....hope this helped..
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