I got a hold of Alene Holzman today. . . . PLEASE QUIT PANICING!
Yes, I actually spoke with Alene today and had a very helpful and clarifying conversation. Before I share what she talked with me about, I really need to address a couple of things:
First, with all due respect Jeeza, I appreciated the fact that you posted mentioning you had no intentions of scaring people into selling. I agree that there is a need to find out what is going on. However, what I don't agree with are some of these conspiracy theories. I agree that we are entitled to find out what management is doing with the money we are investing, but please don't start accusing people of fraud and deceit unless there's some good evidence to support it. You all are going to feel really stupid (as did I) when you find out why Singh's reduced his position in Chemtrak. But to go so far as accuse the Chairman of the Board of releasing documents to increase the value of a stock only to sell really isn't grounded in fact. For one reason, we don't know when he's been selling. The document did not disclose that. Nor did it even disclose the fact that he's been selling (which I'll get to later). It said he has reduced the number of shares he owns which we interpreted to mean selling. I realize we're entitled to throw out theories as to why things are happening or are slow, but again, with all due respect Jeeza, aren't some of your posts doing the very thing you have told the rest of us no to do? To hype and spread potential rumors. I realize you were stating your opinion, but the dogmatism by which you shared them got even me worked up (and I'm a loyal investor). And then to go on and accuse Musti and Justin of being Chemtrak insiders because they became new members or have never posted before? I just don't buy it. It's too much to swallow, and my imagination really can't go that far. That's a whole other issue. I know you're on your train of thought, but I promise you that after my conversation with Alene, all of my questions have been answered and I simply cannot buy into this idea that Chemtrak employees (including the chairman) are selling stock after it's been hyped because of a new release. I'm trying to say this as nicely as possible Jeeza, and this is in no way an attack on you as a person. That's the last thing I want this to be. But don't attack others when you yourself posted how glad you were that the board hasn't gone to these extremes. Can't we all make an agreement that we explore issues of truth regarding the company in a responsible way? Let's please as a thread make that agreement from this point forward. All it takes is one small wave of negativity to really ruin a thread. I vow to continue to speak to the issues (like the one I'm addressing now) but to do so without name calling and slandering or even getting mad at the person. Let's base things in fact.
With that said, here's what I found out from Alene:
I asked about the debentures and she informed me that there would roughly be a little over 12 million shares once they are all converted. It is roughly 2 million shares total or approximately 20% of the company at the time they were issued. What those might go for in the future and how many shares are actually issued will obviously depend on the price of the stock.
Regarding everyone's fear of Singh selling. Lots of things to say about that:
-Yes, he no longer holds more than 5% of the company as can be seen from the report.
-This reduction of shares started back in May of 1996 and has continued steadily.
-I want to see the actual report saying that Singh has sold, because I don't think there's anything to substantiate that. What he has been doing over the course of the past few months is gifting a portion of his stocks to different family members. That is what has caused the reduction and the filing of the form merely indicated that. But realize that there is no evidence that he was selling. Alene herself said that Dr. Singh obviously wants to hold onto his shares (implying he believes in the company and its future value).
-Alene was concerned obviously not about the document itself, but people's reactions to the filing and assuming the worst.
-It has absolutely nothing to do with FDA approval of HIV (as some of suggested some big rejection).
-Nor did it have anything to do with the H.Pylori marketing agreement with Astra Merck. The HIV test is still awaiting FDA approval and they are still waiting for Astra Merck to sign off so they can begin shipping.
There was no fear in Alene's voice. She seemed confident and the same Alen many of us have talked to before. I assure you that based on my conversation with her that things are still on track. We are looking in my guess at a 6 month period. If there are people who are in this stock for the quick buck, then now would be the time to get out. But if you believe in the fundamentals of this company, then I would advise staying in.
Regarding shipment of ColoCare:
-A small amount will actually be shipped this quarter.
-Full shipping begins in 2nd Quarter.
-Mainstream supply should be in stores by April/May.
So, based on this I hope this clarifies things. This I promise is the full essence of my conversation with her. I have no more information, so asking me questions directly I will not be able to answer, but feel free to post concerns and/or reliefs as a result of this post. I hope it has been helpful.
Piper |
