Okay, Midland owns 6.4% (1,315,800 million shares) of CBQI's stock, for which it paid $23,125. According to Midland's 10K, Management believes the stated cost of the investment approximates fair market value at December 31, 1998. On that date, CBQI's low was $6.25 and its high was $8.25, so the lowest value I can see would have been $8,223,750. As I write this, the bid is $3.38, making those shares worth $4,447,404.
A few obvious questions leap to mind:
1. How do we reconcile management's "fair market value" with the actual price of the stock on the date in question?
2. Where did Midland get the $23,125?
3. Why don't my investments perform this way?
4. I've got a check for $23,125 ready to go. Since CBQI is selling for basically half of what it was in December, can I get 2,500,000 shares of CBQI for it? But I'm not greedy - I'll settle for 1,000,000 shares.
5. Can someone show me a picture of our fairy godmother who turned this pumpkin into a magic coach?
I'd love to see Midland trading again, and I hope we all get our money back. But all I see right now is a lot of hope hanging on some all-too-familiar hype.
Joe
P.S. You'll note that this post doesn't flame anyone, either by name or by inference. It just states a few facts and asks a few questions.
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