Sparky --
I will go out on a limb and say that the post you found on Yahoo is largely bullshit.
The part about HNLY reporting a loss makes sense. Where are the profits going to come from?
But the part about the "good news" is more of the same undetailed crap about HNLY that's been polluting cyberspace for ages.
Both before and after this company changed its name to HNLY, its method of operation -- apparently pioneered by Martin Swarzman -- was to keep acquiring companies or technologies, keep promising great future results from these acquisition, and keep losing money. It seems to all Swarzman knew how to do was acquire companies, make money for himself, and bleed shareholders dry.
My guess is that HNLY is still being run in accordance with Swarzman's blueprint. (As of the last report, he owned more shares than anyone, and he may still control the company day-to-day.) And whether or not he's still at the helm, the fact remains that nobody at HNLY has shown any ability to make money via acquisition.
The beauty of HNLY's "we'll grow through acquisition" story is that it diverts attention from the here and now. For example, what about MC Technologies. Making money? What's its strategy? If HNLY can't make a go of MC, then why should we expect anything from future acquisitions?
As I see it, the only thing HNLY has going for it at the moment is its stake in MGRA. Maybe, just maybe, the HNLY people outnegotiated Mr. Magnotta of MGRA. But I doubt it. Magnotta knows better than anyone in the world what MGRA is worth,and he seems to have sold out cheap. I tend to think that means MGRA isn't going to turn to corner into real profitability, and Magnotta knows it. There's also the matter of the debt HNLY incurred as part of the MGRA deal -- repayment and debt service will be drags on any earnings HNLY otherwise would have.
HNLY is about as speculative as they get. Since I'm already in (in a small way), I can live with taking a small flyer -- and it's less work than trying to daytrade YHOO. But if those of you who say you have tens of thousands of HNLY shares aren't exaggerating, I sure hope it's cash you can afford to lose.
How do you know that the people running HNLY are even honest, or have your best interests in mind? This is not only a gamble, it's a gamble where the house knows the odds and you don't. The cards could be marked, the roulette wheel could have magnets in it, and the slots may be set to never make a payoff.
Reading that some guy says his "sources" expect "good news" is no comfort at all.
Well, at least we have Daisy Campos as a member of the Board of Directors.
-- Jim
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