RE: let`s cut to the chase - PMB2
posted on
Nov 29, 2005 01:59AM
I don`t think it`s a matter of people not wanting to touch your question. I believe it has more to do with the math. FWIW, Here`s what I know:
1) In the most recent 10Q, the Company has announced the intention to have a name change and reverse split within the next 6-9 months.
2) The reverse split could be anything from ``1 for 2`` to ``1 for 100``, it doesn`t really matter to me. (In the case of intercell, the reverse split was 1 for 20).
3) Let`s say the reverse split is 1 for 10. If I currently hold 100,000 shares at $.065, the value of my investment is $6,500. If there were to be a 1 for 10 reverse split, I would hold 10,000 shares, but the value of each share would be $.65, so the total investment value would bemain the same.
4) There are lots of examples of other companies having done reverse splits in the past. For some, the share price cotinues to decline, for others, the share price increases. That is not determined by the reverse split, but rather the value of the company.
5) I have friends that hold hundreds of millions of shares of a stock with an outstanding that is ``estimated`` to be two hundred billion. They hold a lot of shares, but unfortunately, there is almost no value I would rather hold 1000 shares of a stock worth $40, than millions of shares of a stock worth nothing.
6) I, for one, am a lot more interested in the Company producing revenue, and shareholder value, than in how many actual shares I hold. I don`t believe that observations about the Company preparing for production amount to merely ``polishing the boiler``. It is clear to me that when the revenue stream begins, it will bring increased shareholder value, and a higher price per share. Without the revenue, there is little hope of much value, reverse split or no reverse split.
7) My observations, from my visit to the BioAgra facility, and from my own due diligence, lead me to believe that we are very close to beginning production of a product, a market for which there seems to be a significant and growing demand. I believe first runs of production will begin very soon, (within a couple of weeks) as announced. Between sales that have already been committed, and sales that may come from the Poultry Expo in January, I believe we will be hard pressed to meet the demand.
8) Production capacity is estimated to be, at the very least, 10,000 kilos per month. I know, as I have posted here, that others have been selling a similar product in limited quantities in the domestic market, for $150/kilo. Do the math. That excites me a lot more than counting the number of shares in my account. It represents the POTENTIAL VALUE of the shares I hold.
Best regards,
-zties