To all:
I'm making these posts are a counter to the continuing veiled insinuations in Ian's posts. When the $0.28 placement was done, the stock was trading at about those levels. When the $0.90 placement was announced, the stock was trading at about those levels. In other words, normal financing. People may not like it, and it may not be fair, but this type of activity is typical of all stocks on all N.American exchanges.
If Ian wanted to make a case that all junior stocks are a scam, or that private placement rules on the various exchanges don't make a lot of sense, I wouldn't argue with him, but singling out VNE, which has had no unusual financing activity is pretty misleading. Everyone knows that Internet stocks are volatile and VNE is no exception. If you want to see similar stock price and financing descrepancies, you don't have to look too far -review Bid.com's press releases for example, or for that matter, any Nasdaq, TSE or NYSE financing/IPO ever done. I've never seen a prospectus where there wasn't some cheap stock that came free relatively quickly.
A 'scam' implies there is no legitimate business case. This clearly does not apply to VNE. Cash Flow? The alliance was just announced.
VNE is overvalued based on Cash Flow, but there are few, if any, Internet stocks that aern't.
VNE has value because the company has a demonstrated ability to attract clientele, create alliances with industry leading partners, raise capital, market its product, ally with ISPs and develop technology. All this is demonstrated in the Company's press releases and web sites. If the sentiment towards Internet valuations changes, then VNE's share price is in trouble. The stock is a risky junior, but its a good bet, and I doubt its a scam. I understand that there'll be some pretty positive press coverage soon, so hopefully that'll inject some reality into this thread. |
