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Re: Spegarcia22 post# 2919

Thursday, 02/06/2014 4:52:19 PM

Thursday, February 06, 2014 4:52:19 PM

Post# of 3010
@Spegarcia22 - Selling not good idea

In my opinion ALIF is not ready to be sold because the company is in the early stages of recovery and their proprietary AI algorithms and graphics development tools need to be reengineered to meet the requirements of the new generation analytical platforms that a potential suitor would be using. In other words, ALIF's tool kits have to be more consumable to enable a 3rd party to extract value from it. Without this, a suitor is not willing to pay a fair value for the company.

In the buyout examples you mentioned, those companies had products with easy-to-use and full-featured interfaces (APIs) that were compatible with high profile platforms. That enabled the purchasers to get an immediate ROI.

I think partnerships (instead of selling the company) will provide Alif with more opportunities to improve their tool kits and grow the business.

I agree with you that it's difficult to know exactly how profitable ALIF can be on its own. It all depends on how much the CEO learned from his previous setbacks. Remember that the ALIF IPO was at $15 and went up to around $40 before it collapsed to the sub $1 level. For sure the CEO can easily take the stock value to $1 - $2 in the company's current condition. Issuing quarterly non-audited financials would be helpful. (Audited reports are too much of a burden right now).

Once Alif refines its tool kits APIs then the valuation can go much higher.

In summary, I think the CEO needs to remain in total control of the company and do what it takes to grow the new business model.