I listened to the call. And I found the summary to be linked here to be accurate, and believe it included the more important points. (It seems dialogue here is a lot more constructive to that witnessed on the Yahoo board, where people seem to be getting rather ornery.)
I was disappointed to not hear a more definite plan going forward, though the property expenditure does not concern me, as I feel that is likely to hold its value. In fact, if the Yuan is allowed to appreciate, it goes up in value in dollar terms, as does all the cash.
I get the sense that management is staying somewhat tight lipped intentionally. It seems likely that something is on the horizon. We will just have to wait and see how that unfolds.
I am not particularly concerned with Hongrui delay, as the projecions for this year were low, and they did affirm guidance, which I am inclined to believe, as one thing this company doesn't seem to do is blow smoke. It's the opposite in fact. And I think this call was extra measured because expected timelines given in the past have come and gone. They really do need a new COO, and if they hire one with the right experience base, it could really change the evolution of this company, including the speed.
The bottom line is that if the company can continue to maintain revenue levels, that this stock remains cheap, whether you bought it at $14, $9, or cheaper. People that don't recognize this do not appreciate the financial leverage that JGBO has over most of its peers. I am not aware of any that have so much cash, even if all the financial instruments are not converted. This will allow them to weather the storm.
I am also bummed that I did not sell at $14, or even $12, but hey, that's life in the stock market.
I did get the sense from the call that uplisting is more of a formality than anything, and I don't see anything getting in the way. Unlike other companies with complicated debt instruments, JGBO seems to be accounting for them properly. Heck, that's part of what's kept a lid on the stock.
It's worth noting that it's not like people are selling en masse. As we all know, there is usually a wide spread between bid and ask, and I think if lots of people really wanted out, the ask would have been dropping more aggressively. It really didn't. The real closing price yesterday should have been $9.25, so we dropped about 6%. BSPM dropped way more, and they just put out a pretty good report.
Finally, like someone else commented, this just became a very long term holding for me. It's clear that the turn around is going to take a little longer than I expected. Then again, the company did always say this was the transitional year, and there is no reason to disbelieve that the company can put the cash to work to buy prescription drugs that they can already manufacture in the current facility. And at least one should be approved by the end of the fiscal year, to fill any void as the other drugs mature.
More than anything, I am dismayed by the price action. This response seems disproportionate to what has happened. If people are concerned about the declaration of default by default, they are making way too much of it. It will only increase the interest for the last 6 months of last year, when the company provide shares instead of interest in US dollars.
Thank you for everyone's thoughts. This is a good group. Have a nice weekend.
