CRNC...
Thomas,
To good to be true? I think that sentiment is what accounts for the sub $1 price right now...however I've spent a bit of time in follow up to find the truth, or at least a bit more about the prospects for it becoming true...so far I'm satisfied and have decided to start accumulating.
The 900K float and other information in the SI CRNC thread header is no longer accurate, I know. The information there is outdated and does not reflect the new direction of the company. The focus for me is the 3 acquisitions detailed in the following press release:
biz.yahoo.com
If audits currently underway turn out to be in line with the published projections, the "new" CRNC expects "revenues of
$77,600,000, with projected net earnings of $16,550,000 or $1.11 per share fully diluted and net tangible assets (unaudited) of $13,600,000."
I have spent a considerable amount of time talking with CEO John Whitman and IR's David Salmon in an effort to confirm that progress continues toward the closing of these impressive acquisitions. The feeling I get from my most recent contact with them is that each of the companies are excited about being a part of the new conglomerate and are hoping for a speedy closing. They companies are already sharing offices together and are realizing synergies between them. See latest release that supports this:
biz.yahoo.com
Now, this all sounds great but I am still watching with a close eye. It's quite possible that the audits may not pan out and/or acquisitions may not go through. This type of thing has happend before in other such situations (with companies other than CRNC). As long as my confidence remains high in these deals going through, I will be accumulating CRNC.
Sure there is risk in such a play, but I feel CRNC has more information out there for one to make a decision on than most OTC/BBs...As usual, do some research, call the company, make your own decision etc. etc.
FYI- The "Market Maker Plus" magazine has apparently been published and Whitman was in NYC recently to promote it among other things. Also, something you won't find in the PRs, CRNC has obtained the necessary financing for the cash part of the acquisitions from an important underwriter possibly to be named later....
Also, a $33MM deal by one of the subs, Seminole Scrap, should be signed sealed and delivered soon...expect to hear more about this in a future release. Expect to hear about a conference call being scheduled to detail the forthcoming closings and other exciting developments. Last time the company had a conf call, the stock spiked up to over $3.00. If these deals close and all goes well, CRNC should beat that former high, IMO. At current levels there doesn't seem to be much downside.
Check out the company's website thoroughly...lots of info there:
chronicleinc.com
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