DISCLAIMER: I am not a professional stock picker. I sometimes believe lies, and I have been fooled before, on this stock. IN fact, I'm a complete idiot, and I can prove it.
I just bought more dbdy. I never thought I'd say that, but at $.18, I could not resist. Here's why.
I just had a nice long conversation with Mr.Kane. By gawd, he seems to have a business sense.
Mr kane is an attorney who owns an architecture business who was consulting for DBDY for stock. He originally suggested Lodick leave, and was asked to take the interim position for an undetermined amount of time. He is being paid in stock options, and currently owns 260K shares (about a dollars worth <<VBG>>), some of which he bought. He was embarrassed to tell me how much he paid. His main push is to take advantage of what they can do, stick to core businesses, and earn some freaking money.
The big news to me was that the Sec 29 tax credit idea is NOT dead. In fact, it is probably going to be the next major announcement we hear. Maybe even get Zeev back in with us, and then the stock really flies. Anyway, the equipement was up in time, and the letter of intent is being drafted now. Out and published in a few (hopefully two) weeks. Then the web page goes back up, the letter is shown, and a PR group is hired. The new credit contract should yield $2.5+ million/year, or about $.05 share profit (net). This would be 1999 profit.
My note here is that the deal is not very good. In involved DBDY only retaining 20% of the profits. However, Lodick's big problem was holding out for more money. In my book, taking a not-so-great deal is better than none at all, especially for a company who has to re-earn its reputation.
Mon View is dead, and Thompson is in Chapter 11 to protect it from Mon View from taking the $2-3 Million in coal fines owned by that subsidiary. Since they have a small Econosizer, they plan to sell it to their sucessor at mon View for $600K, which should be enough to bring Thompson out of bankrupcy. This is very likely to happen this year.
Warren ohio is up and running and should generate a profit in 1999. The old bond issue never happened, but they are still trying to get it moving. It should happen within 30 days. The resulting financing will save dbdy $25K a month in lease fees.
In the end, March will be an important month. We should see a new web page, a nice press release with money attached, a PR firm with an 800 number, and more on-time financial reporting. Not sure if 98 was profitable, but 99 will be.
Burn rate: $75K per month, cash on hand, about $19 cents per share.
Assuming I haven't been really lied to (again), we may see $1 this year, if not next month. This is reasonable since the sec 29 stuff would yield $.05 alone and a p/e of 20 is reasonable.
I am averaged down now at $.39. This may be the time to invest. maybe old dogs can learn new tricks. |
