Re: 52 week low
in response to
by
posted on
Mar 08, 2011 02:12PM
(Edit this message through the "fast facts" section)
If Alda goes ahead with the the purchase of the manufacturing firm for $1M in cash, they will be running very thin on working capital. This has me very worried because they've pretty much tapped out all they're going to get from private investors from PP's. So what's next? A PP at 5 cents? 3cents? TO can only afford to fund the co. for so long until he decides to cut and run.
One concept that seems to evade management is "return on investment." We all understand that sometimes you have to spend money to make money, but the whole Olympics fiasco was just a plain bad business endeavour. If they hired a first year Business Admin. student to do a cost-benefit analysis, they would have known that spending millions to sponsor the Olympics with no chance of profiting from it is just dumb. Of course, TO would just simply suggest that there are intangible benefit that cannot be quantified, but I don't see big Pharamaceuticals beating down Alda's door to get a piece of T36.
Unless they announce that they got some huge contract for supplying products in the US to go along acquisition on March 11, we can forget about any share value appreciation. So what if they can now make their T36 brew cheaper than before. The problem was always on the demand side of the equation. We need people to buy the products first.