So your telling me our best customers may be in Calfornika, growing wacky weed for medicinal purposes, LOL!!!
I hear there is a lot profit in that, LOL.
Maybe they are on to something.
What concerns me is that I had expectations of seeing COIN up over $1 and maybe even approaching $2 by this time next year, if they finally at least broke even by this time next year. So far this Terra deal looks like it might cap COIN's stock at under .76/share, due to massive dilution, and an anti-dilution deal for the Terra converted to special COIN share holders only.
I have another stock I am stuck with that is trapped with this anti-dilution crap (MHAN), where 1/2 the existing (other) shareholders (Hedrin JV) get free shares every time the company needs to raise cash or gets a real opportunity to expand via merger, and needs to issue shares to do so.
I see no real indication from COIN management that any of the most recent deals (buying the farm, or starting up a waste water division) are generating positive income based on the acquisition price or operating costs they added, or generating positive income based on operating costs.
Does it make sense to pay $25 million dollars in under priced (historically) stock for a risky new company with a recent burst of sales of only 4.5 million the last 6 months? Now if they had positive earnings of 2.5 million the last 6 months, I would say buy it, maybe. But sales and revenues are not profits. And so far COINS losses have risen just as fast as their revenues, so their track record is not so great on the earnings front.
I may just sell now, and wait a year or so for the R/S that may be coming to clean up this mess they are making. Then after the stock price crashes again due to the R/S, then I may see where we are, possibly with new management that knows how to operate a company profitably.
If I keep my shares, I may led a revolt to stop this deal as it stands, but I suspect they already have enough insider votes from those that own a piece of both companies already (Gildea clan) to force the deal through. I see 3 of the Gildea's including the COIN President and CEO are also large stock holders in Terra, from the SEC report I read yesterday. Nice to be able to sell an overpriced private company you own a bunch of to a public company you own a bunch of AND run, as the CEO and president, and structure the deal so that all future dilutions dilute everyone else but your new shares you got in exchange for Terra.
This game here is starting to sound a little familiar, like the double dealing cr*p the head of DRYS pulled the last 2 years that nearly killed DRYS (Dryships).
Either I am missing something here, or these guys are incompetent when it comes to protecting shareholder value.
Now, playing devils advocate with myself, since Terra and Terra stock holders get no cash in the deal, and shares are initially restricted, where is the cash pay out going to come from? Perhaps Gildea et. al. will sell the old COIN shares at market that are not restricted when the completed merger news goes through and boosts the price, since those shares can be diluted, and keep the temporarily restricted shares of COIN they get from the Terra deal that can not be diluted, thus keeping control?
Brilliant!!!!!! Now why didn't I think of that!!!!
So is the Terra outfit the only game in town?
Stayed tuned to find out!!!
