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Samuel, The company is in the process of completely reinventing itself. An offer has been made to change from a distance learning company to Costa Rican poultry processor. Now, I know that concept boggles the mind, but when the news came out, volume jumped 3800% and now I my share price has tripled. There is an 8K on EDGAR that describes it, but in a nutshell, QLSI will "acquire" the poultry processor, called Pipasa, Pipasa's management will take over QLSI, and QLSI's CEO, James Kirk Isenhour, will buy out the school part of QLSI and take it private. The new company will be traded on NASDAQ with a book of about $1.50 or so and will be named Costa Rican International Holdings. The concept is as follows. Although the number of oustanding shares of the new company will change from about 4.3 million to about 30 million, Kirk Isenhour doesn't think the number of tradable shares; that is, the float, will change a lot, perhaps to 1.8 to 2.2 million. But because now the company is a true small cap and not a microcap, and because it actually earns a net profit giving it a price to earning ratio of perhaps 14 which MAY attract various funds, the small float may cause the stock price to trend up nicely. Kirk has a high opinion of the new management and he thinks the company will do well. He thinks the small float giving rise to an appreciating price will allow it to go around Costa Rica and other Central American countries and acquire interesting investments. The owner of Pipasa, Calixto Chavez, is a very wealthy man and was Minister of the Interior of Costa Rica for 8 years. This should have given him plenty of visibility in recognizing profitable investment prospects, hence the name "Costa Rican INTERNATIONAL HOLDINGS". Apparently Wall Street agrees because the stock has been climbing again after the inevitable decline after the announcement caused the price to spike to over $2. |
