Hi folks,
I talked to John Folgers today and found him to be very straight forward and helpful.
They are looking at a total of 4 acquisitions, of which I believe AHBC is the furthest along. They are also working on PCN, PCS, and one other. He thought there was a very good chance that these would be closed successfully--about 80%
Total shares out are about 14.5M with 10M restricted and held by insiders, 2M in the treasury from the recent PP and about another 2.5M in the float. The company will be depending on a combination of cash and stock to make their acquisitions. From what he told me it looks doable. They will only be using their stock and cash to buy companies they feel will be accretive to earnings. And they will be looking to restrict all stock used for acquisitions for at least one year, possibly longer.
He is very excited about the group and prospects in Singapore and intends to sell US goods to Asian consumers as well as vice verse.
One thing I would like to correct. The 500,000 paying member figure for PCN was a misprint. The actual figure is about 50,000.
As he said on the CC, they hope to have the website fully functional by May/June.
After talking with JF, my overall impression was a very good one. They have a great idea and a very good management team. They will be starting off fairly small but I suspect that by the time their website opens, they will likely have their acqusitions and a number of their manufacturer relations completed. He expressed that they are not looking for the huge spikes in their stock that many other internet stocks have seen, since he would rather see a steady growth without wild price swings. He did say they hoped to have a steady stream of news of new accomplishments over the next few months.
If I were a daytrader looking for a large quick gain, I would not put my money here. However, if I were a mid term (4-8 months) or long term investor looking to place a good speculative bet on an inexpensive startup in a hot sector with talented management, great ideas and a few deals on the table which may soon be complete, I would put some money into RDIM.
I suggest others give JF a call. He is out of town now, but if you leave him a message at 1 860 243-5530, he will get back to you as soon as he can. He is extremely helpful. |
