HERE IS MY LONG OPINION..
I listened to the conference call., and despite being very angry at the turn of events, I will try and be as open as I can..
The plan itself never looked bad to me. But it is apparent by the price, that people are still leery as to whether or not it can be pulled off, myself included. Why do I say this?
1. Larry assumed that the 2 mil. shares that have been recently traded are in fact a one shot deal representing about 1/3 the float. I do not think so. I will lay you odds that there are lots of day traders who have been in and out during this past week or two, and the 2 mil. shares are in fact a lot less than 1/3 the float
2. The ability to implement his plan. Though Stockett truly believes his plan can, and will, be implemented, I am not so sure it will be as large as he assumes. He made mention of 2 bil. He is assuming he will not only grab a large portion of the market, but totally own the whole thing.
3. In his conference call he stated that he had to go back and re-talk with the engineering co. due to the price decline. Well, the price is still declining, so now what?
4. He assumed that because of the "White Knight" appearing, people would fly to their brokers and buy up the stock, assuring a $1.00 price for NASD. As we see, this is not the case.
5. I tried to see what I could find out regarding Phoenix Group or Ajay Kalsi over in India. I did numerous searches in the India papers, but was unable to come up with anything. I am not saying they do not exist, but I would have liked to be able to read something about them in a financial section, or some kind of news article. I may have in fact missed it, but it certainly would have helped.
6. Larry in his conference went back and forth saying he was surprised the shareholders didn't embrace his plan (not exact words), and the stock declined..but after that he stated that he knew the price would drop because shareholders would not like the RS, then said he expected it ..but I grant you that he probably didn't have it memorized, so that is a triviality.
7. He did sound sincere, but as some of the things that he has already stated have had to be changed, due to not being able to meet his original assumptions, I am afraid of what else will not be able to be accomplished. He thinks big, grant you, and that is how successful co. are made, but I am not sure he will be able to do that.
8. What I didn't like was the suggestion of a $100 stock, when we can't even hold it at 50 cents. He is assuming that the whole country will go to him. While I cannot say they won't, I do have a problem believing that...Even huge corporate names have not captured whole markets...There is always competition and business deals going on behind the scenes. But in all fairness, I pulled up some Cement Co..'s and their stock prices ranged from 20-92, depending upon the co.
9. I did not like the idea of his suggestion that we should be telling people about this co. I do not think that is the shareholders job. Yes, we have all done that at times, but I don't think it should have come from the co.
10. I would have liked to hear something regarding the Rights Offering- Larry stated in his conf. call that he would not be selling his stock at a discount (out the back door)..yet one of the topics to vote on was a Rights Offering. What is the difference, I ask? And moreso, we never heard what it might be. He might offer people to buy the stock at $5.00/share when it hits 15...But what if it doesn't?
That needs to be addressed and put into writing what the Rights offering is.
So, that is my opinion. Hope it gives you food for thought
To sum it up, what will happen if the stock drops lower before the vote? If they have to do a 1-10 to keep it just at a dollar, then unless immediate action is taken to move those co. in, the price is doomed.
At this time, I feel it is too risky for me. It is not like an PO. There is no US Cement or McLaughlin Engineering there yet...They are still on the outside.
I wish those stockholders much luck if they chose to stay or chose to buy more. |
