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Gold/Mining/Energy : Gensci Regeneration Sciences Inc. (GNS)

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To: Jose Kranz who wrote (143)3/31/1999 9:52:00 PM
From: Edward W. Richmond  Read Replies (1) of 225
 
Jose, being honest is not interpreted as being negative, at least not by reasonable people.
Yes, we are now on the TSE and producing sales of $2M a month. I'm sure we have begun to get more brokerage attention. In my opinion, the first two points are very positive. The third, analysts' attention, may well be a positive or a negative. I believe it depends on FUNDAMENTALS of the company.
I would refer you to my post #139. If I were an analyst, would I recommend a company that has a slight increase in revenue from Q3 to Q4 while the loss per share grows by more than 45%? I think my reputation might be eroded if I did. Revenue growth without confirming bottom line results scares me. Yes, there can be good explanations for such numbers. I have discussed them with IR and I will share the response I got in another post.
Inge's point about the conversion of debentures is good news. It does provide cash, not that we necessarily need it. It also removes an "overhang" on the stock.
Given all the information available, I am not optimistic about a rally in the stock any time soon. In my opinion, the marketing and general administration expenses are out of control. Watch this figure in Q1!!!!!
I am not negative about the products or patents. I have a growing concern about management's ability to control costs and to run the company efficiently.
This post is long enough. I'll add more later.
Regards,
Ed
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