Raymond:
It does sound great---just like the press release on April 22nd. I'm only echoing Tom in saying be very careful. There's a historical pattern here. I don't claim to have all the facts, but my guess is this: The ISMH deal is almost certainly dead (if in fact it was ever really alive). There will be no money coming in. Rene remains in control and is therefore the ultimate source of information as to what's going on. The company is cash-strapped and Rene will continue dilution on a massive scale, driving the share price ever lower. The current buzz over retrofitted "super" plants (which appears to be carefully orchestrated) may be designed to "prime the pump" and at the same time draw attention away from the ISMH fiasco. My guess is that the "retrofit" story will be ballyhooed at the grand opening, but that it will be "in progress," the final bugs being worked out,etc. (For some reason the term "in negotiation" comes to mind.) Then we'll be told just wait until July, August, etc., etc.
Incidentally, from an e-mail received from another shareholder last night, I understand that the official bearers of the good tidings are giving out extremely different sets of figures as to the effect of the "retrofits." They apparently don't have their stories straight yet, so who knows where the truth lies. A clue: Watch for a new wave of stock to flood onto the market as the new "good news" reaches a creschendo.
It seems that if Rene were the least bit serious about beginning to regain some degree of credibility there are some simple steps he could take immediately:
1. Instead of the hints and innuendo, have the engineering firm handling the retrofit issue a brief statement as to the status of the work at Richmond. Tom was clearly told that this work was in progress at Richmond and would be completed by May 21st. Raymond gave the company's explanation as to why they didn't need new holding tanks. Apparently another shareholder with whom I am in contact was given a totally different explanation!! WHAT'S THE TRUTH??? Supposedly Dick Engineering is handling the work. Let's have a precise statement from them clearing up all these questions----NOW!
2. Issue a clear and factual statement on the status of the ISMH "deal." What happened and where things stand. There is absolutely no reason a statement of this sort would interfere with any kind on ongoing negotiations.
3. Orchestrated hints are being disseminated about the company being in the black by July. If this is really the case, then go public with how this is going to be accomplished. Provide a working estimate as to how much additional dilution will be required to get to that point.
The time for hints, whisperings, innuendo, and glimmering mirages out there on the horizon is over. In the absence of some hard facts from the company, one must reasonablly view this latest orchestration with the greatest scepticism. The inconsistencies and contradictions already seem to be emerging in this latest campaign----may well be no more than another mud pie from the Vancouver dream factory.
Veritas
|
