Wednesday, October 29, 2014 5:22:20 AM
That's hilarious Sewer, you nailed me: wowed by the technology and greedy. I should never have gone to the sineage show. The Wheelies really are impressive, and I was enamored by the prospect of meter sales in Brazil. Bought a serious bundle when I came back from the show, saw people were still confused about what was going on (little news from WM) and shares were trading below 6 cents.
sfcwake didn't ask, but since my nom came up and to offer a different scenario from the inestimable nmills, here goes:
I think the best we can hope for is the Malaysia YES deal goes live, the agency handling the Wheelies has some sales and WM is truly a signature away from a meter contract (India, or Thailand under the junta. We have to hope democracy doesn't rear its ugly head in the kingdom).
If WM gets a contract big enough to start meter production, it can get a bank loan to cover variable costs with, I would hope, a little left over.
It will still need to go to the equity market to cover its fixed costs, but if it has income, it will have some leverage. Unless management is spending all its time in absinthe bars, it should get a much better deal than the last one.
Those conditions should give the company time to sell into niche operations in Europe or U.S.
If along the way, it starts landing contracts in Brazil with municipalities mandating meters on moto taxis, then, assuming it can ramp up production, the sky really is the limit.
WM has 378.03 mil shares outstanding, and that number is set to increase. The announced India tender is worth maybe $9 million tops. Even if WM lands it, all we're looking at is credibility points, which are significant but not money in the bank.
Right now Aegis largely controls the stock price, but it does not control the company. Aegis is granted all assets under certain conditions, but that clause in the contract doesn't mean much, since WM has no assets except a few patents of questionable value.
It's meaningless at this point to try to guess where the share price will go, but I'm in line with Sewer. Down the way, a year or more, if Brazil opens up, then big time. Say the company lists on a minor but credible exchage (Mothers TSE?), you'll be glad you stayed for the ride.
Another scenario, share price gets a little bump after news releases, but no quick sales follow. WM goes bust.
A scenario that involves a massive gain overnight is best explained by nmills or patternseeker. I would try to work that out, but I don't have time. I see a bag lady howling at the moon. I must hurry over and try to convince her she is not a werewolf before she bites someone.
Aside to sfcwake, are you still with us? You say you are a novice investor, but how did you happen to find WM? In a not long ago job (retired now), I read equities news/data all day long, saw an item about a PI suing several pump & dump outfits and wondered what kind of company World Moto was. Checked it out, thought it was interesting and bought a few shares to keep my interest up. Bad move.
Anyway, whatever happens with WM, stick with equities. Also, study up on options. Some days ago, I bought a few hundred shares of Stratysis at $117 dollars a share, solely for the options trade. I immediately sold calls at $117 a share for $550 a contract and sold the same amount of puts at $116 for $460 a contract. The strike date is November 7. You have to nose around to find deals like that, but when you do, it's sort of like free money. To prevent my making a profit, Stratysis will have drop to $106 a share by Nov. 7. It's a pretty safe bet.
It also helps keep my mind off WM.
sfcwake didn't ask, but since my nom came up and to offer a different scenario from the inestimable nmills, here goes:
I think the best we can hope for is the Malaysia YES deal goes live, the agency handling the Wheelies has some sales and WM is truly a signature away from a meter contract (India, or Thailand under the junta. We have to hope democracy doesn't rear its ugly head in the kingdom).
If WM gets a contract big enough to start meter production, it can get a bank loan to cover variable costs with, I would hope, a little left over.
It will still need to go to the equity market to cover its fixed costs, but if it has income, it will have some leverage. Unless management is spending all its time in absinthe bars, it should get a much better deal than the last one.
Those conditions should give the company time to sell into niche operations in Europe or U.S.
If along the way, it starts landing contracts in Brazil with municipalities mandating meters on moto taxis, then, assuming it can ramp up production, the sky really is the limit.
WM has 378.03 mil shares outstanding, and that number is set to increase. The announced India tender is worth maybe $9 million tops. Even if WM lands it, all we're looking at is credibility points, which are significant but not money in the bank.
Right now Aegis largely controls the stock price, but it does not control the company. Aegis is granted all assets under certain conditions, but that clause in the contract doesn't mean much, since WM has no assets except a few patents of questionable value.
It's meaningless at this point to try to guess where the share price will go, but I'm in line with Sewer. Down the way, a year or more, if Brazil opens up, then big time. Say the company lists on a minor but credible exchage (Mothers TSE?), you'll be glad you stayed for the ride.
Another scenario, share price gets a little bump after news releases, but no quick sales follow. WM goes bust.
A scenario that involves a massive gain overnight is best explained by nmills or patternseeker. I would try to work that out, but I don't have time. I see a bag lady howling at the moon. I must hurry over and try to convince her she is not a werewolf before she bites someone.
Aside to sfcwake, are you still with us? You say you are a novice investor, but how did you happen to find WM? In a not long ago job (retired now), I read equities news/data all day long, saw an item about a PI suing several pump & dump outfits and wondered what kind of company World Moto was. Checked it out, thought it was interesting and bought a few shares to keep my interest up. Bad move.
Anyway, whatever happens with WM, stick with equities. Also, study up on options. Some days ago, I bought a few hundred shares of Stratysis at $117 dollars a share, solely for the options trade. I immediately sold calls at $117 a share for $550 a contract and sold the same amount of puts at $116 for $460 a contract. The strike date is November 7. You have to nose around to find deals like that, but when you do, it's sort of like free money. To prevent my making a profit, Stratysis will have drop to $106 a share by Nov. 7. It's a pretty safe bet.
It also helps keep my mind off WM.
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