Sammie, when I do DD on a company, I use their annual reports and their SEC filing, I try to see if they have unique technology well protected by a picket fence of patents (or other picket fence) or other barriers to competitive entry. In this case, my screen stopped me at the last 10KSB. That is all. I am not going to go deeper for the simple reason that the company suggested that they are in a precarious position. I hear you people had a controversy about a floorless instrument, and if indeed this company is financing itself with such an instrument, I just do not go further either. The reason for that is very simple, so far in the last two years I have "followed" more than 20 companies with such instruments into near oblivion. The presence of such an instrument is an indication that the money men viewed this company as a near death company and were not willing to take the risk with more traditional equity or debt funding.
If I were to go and read some of the material and did not agree with the rosy projection of the threaders, I'll have to spend valuable time reading insults. Why should I trouble myself? But as I have said to TG, if someone were to volunteer in three short sentence why they are invested in this and think that it is the best thing since sin, I might even change my mind. So far, the volunteers had only crude remarks which do not entice me to stay around.
Don't you think that it would have been simpler to make three statements like:
1. The company plan is this and this. And, it will cost this and this to achieve this plan, and in three or five years the company is expected to have that much revenues and that much earnings per share.
2. The company has lined up that much money and the resulting number of shares will be so much, and that money will be sufficient to get into positive cash flow.
3. The company commands a unique place (niche, whichever) in the market place, because ... and all its competitors know not what they are doing, because...
Good luck to all of you.
Zeev |
