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Volume preceeds price movement, right? Now let's move this baby. EOM.
C.B. thanks for the info, this helps a bit. No, I am not a CPA, just an MBA with a bunch of questions to clarify the financials so I can make an informed investment decision. This appears to be a solid and growing company but I want to make sure I am not missing anything and be as thurough as possible.
Ok, so K9 has one large client that has been slow to pay. So that accounts for just over 1/3 of the receivables ($289,298 K9 revenue versus $810,814 AR). If the collection rate is an average of 45 days that means we would collect half of our revenues for the quarter before the report. So 50% of the Labwire revenues equals about $376,500 left over as AR. Still about $145,000 of AR unaccounted for IMO. Perhaps the end of this quarter was a little longer then 45 and more like 60 days which is still not bad. I consider this question closed. Thanks.
One additional question though. Is K9 a wholly owned subsidiary of Labwire? Still trying to account for the meaning of "advances to affilitiates" asset. I saw the link to the K9 website on the Labwire website yesterday but I did not see any mention of ownership. Ideally this would be an entity of Labwire, which would add additional value IMO.
My other question about the Computer Expense is, did the company purchase its own Printing & Reproduction equipment within that $60,000? I noticed that the expense for P&R dropped to zero so perhaps we have internalized this process which means additional saving over the long haul. Rather save the money then make Kinkos richer. I totally understand spending $60,000 for all of this. I work for a telecom company in the IT department so it sounds like we are loading up on techie stuff for the future. Very good deal. My only issue is that there is no increase in Fixed Assets to include this acquisition. That would help to increase the asset base in the financials.
Don't get me wrong. I have nothing against the accountant. Just thinking out loud on ways to improve the appearance of these financials and eliminate the cloudy portions of it.
I don't mean to come off as a basher but I have a few questions for anyone that may have already contacted the company or is smarter then I am.
1. Whatz up with the negative value of the Encore Checking asset versus a positive value in the Encore Bank - 3247 account asset? IMO they need to clean up their bank account before publishing a financial statement. This just looks really bad, like the company can't keep their check book balanced.
2. Why can't they seem to get Account Receivables under control? I'm seeing 95% of revenues is now being carried as receivable which indicates that they must have a longers collection period then 90 days. Isn't like 60 days the standard? I see a Bad Debt expense that accounts for less then 1% of account receivables. They need to account for that somewhere in their financials so that we don't get surprised by a Non-Recurring Charge.
3. Should Advances to Affiliates be listed as a current asset? I view this more as an investment in K9 and should be listed as a longer term asset. No income from interest paid which indicates this not a loan.
4. What does employee advance mean? Not many companies out there loan money to employees and publicize it to the world.
5. I don't think the Goodwill is accounted properly. They paid a total of $467,360 for Workplace Screening Services, Inc. and they are accounting all but $10,426.78 as goodwill. Is that all this company was worth?
I'll have a couple more tomorrow as I get to the next page. I'm not trying to tear this company apart, but I would like to get a few answers before investing. Eventually I will get around to contacting the company if we are unable to come up with a consensus to any of these. Thanks.
Wonway, the sell off that you speak of is exactly what is happening right now. We passed the date that you needed to own the shares. Tomorrow is just the delivery date. So everyone bought to get the free shares and many are unloading. IMO they will regret getting rid of this gem in a few months. We should see this one trade between $0.04 to $0.05 for awhile until more news comes into light and we can upgrade expectations. For longs the best way to handle this one is to set accumulation targets and walk away. Checking this one once a week will prevent you from panic selling.
I think we can all walk the dog in our minds. Grimes 3 and 4 come online in a few weeks and we should see another $0.02 minimum. Then Tyche goes public and we can actually value the 50% ownership in Tyche, which should push us up a few more cents. Each LOI completed should equate to at least another cent each. So $0.04-$0.05 now means $0.10-$0.12 easy within a few months time and with no new wells in TX and no gusher in NM for WWNG. Factor this in and we could be double that forcast. This one is set to run. Only a matter of time.
Wits Basin PR
Wits Basin Reports on Due Diligence Progress Related to the Vianey Mexico Silver Mine
WEDNESDAY, MAY 31, 2006 7:31 AM
- BusinessWire
MINNEAPOLIS, May 31, 2006 (BUSINESS WIRE) -- Wits Basin Precious Minerals Inc. (WITM) has received information from one of its geologists, Dr. Clyde Smith, relating to Vianey Mine Concession located in Mexico. Wits Basin has signed a letter-of-intent and has until June 30, 2006, in which to complete its due diligence, whereby it may acquire an undivided 50% interest in certain mining claims comprising the Vianey from Journey Resources Corp. (CA:JNY) .
Dr. Smith stated, "The Vianey Mine in the state of Guerrero is located in an area of southern Mexico known for mineral deposits of a variety of geologic types. The silver-lead-zinc vein, manto, and breccia deposits that have been mined almost continuously on the Vianey property since 1976 are characteristic of several of the ore deposits in this part of Mexico. Significant past production from six underground levels on two principal veins indicates a broad distribution of silver-lead- zinc ore in steeply dipping structures over an area of 300 metres in length and 150 metres in depth; some underground workings terminate in apparent ore grade mineralization. Underground drilling programs conducted in 1996 from the deepest level of the mine (75 metre level) totaled 2425 metres of core drilling. Numerous holes intersected several potential ore grade mineralized zones over potentially mineable widths at depths of up to 100 metres below the deepest mine workings. In addition, two sizeable breccia bodies have been identified that hold potential for bulk scale underground mining.
The Vianey Mine project exhibits excellent potential for additional exploration and development. Following the recommendations of R. Blakestad in his October, 2004 report, it is believed that an aggressive program of surface drilling should be conducted to substantiate the 1996 data and to extend the known mineralized zones to depth and laterally from the current workings. The underground workings should be surveyed and the survey data along with underground sampling results and drill hole data should be entered into Gemcom, an industry standard software package that allows detailed three-dimensional analysis of mineralized structures. This approach will serve to accurately identify drill targets."
Wits Basin Management believes this information is very favorable and is continuing with its due diligence process in order to validate the data. We will have one of our consulting geologists making a site visit in early June to assess the current condition of the mine.
About Dr. Smith
Dr. Smith holds a B.A. from Carleton College, a M.Sc. from the University of British Columbia, and a Ph.D. from the University of Idaho. He is a registered Professional Engineer with the Association of Professional Engineers and Geoscientists of British Columbia. Dr. Smith has founded or co-founded five exploration companies and is responsible for the discovery of four deposits: the Jason lead-zinc-silver deposit, Yukon Territory, Canada; the Santa Fe gold deposit, Nevada; the North Lake gold deposit, Saskatchewan, Canada; and the Solidaridad gold-silver-copper deposit, Mexico. He is currently engaged in a gold-platinum project in Nevada and serves as the consulting geologist for El Capitan Precious Metals, Inc. on its El Capitan gold-platinum group metals project in New Mexico.
About the Vianey Mine
A review of past calculations of potentially mineable tonnages of mineralization above the -75 meter level, including the most recent exploration activities completed in 1997, and as reported by Mr. Peter Hawley in his 2000 reserve and drill resource study, provides an estimated total in all categories of 345,020 metric tonnes grading 2.13% lead, 3.66% zinc and 269 grams of silver per ton, which at current metal prices would have an in-ground value in the order of US$250/ton.
About Wits Basin Precious Minerals Inc.
We are a minerals exploration and development company holding interests in three exploration projects and currently do not claim to have any mineral reserves on any project. Our common stock trades on the Over-the-Counter Bulletin Board under the symbol "WITM." To find out more about Wits Basin Precious Minerals Inc. (WITM) visit our website at www.witsbasin.com.
Hang on boys the word is out. PLKC has a heart beat once again and smart money is flowing in now. Look for a series of small contracts leading up to a substantial contract that might just take us back to $0.01. Every company just needs a start to get them going and PLKC just got theirs. If BIGN bounces I will have more funds for PLKC. Good luck.
Heck yeh, I am still here. Not accumulating anymore though. I was trying to steal some around $0.002 but no luck. This is a long term hold for me. IMO there will be a few more deals leading up to a deal of real significance. The Two Men and a Truck deals will continue to flow in as well. Putting together a complete business model like this is not easy and does not happen over night, especially if the company is cost conscious. Sorry I haven't been hanging out here much. Just way to busy over at BIGN. If you have a little free cash I'd recommend looking at that one today because it is in the middle of a consolidation period before the next move up. Be sure to read the last few months of PR's and check out the posts of futrcash on the BIGN board. Very reliable source of DD. Good luck.
From a pure chartist perspective the heavy buying volume should continue once we touch $0.04. I think they call it a Fibonnaci Retrace. Very healthy chart formation. Combination of profit taking, shaking the weak hands, and lurkers that missed their opportunity get a second chance. We all know that even at the high of $0.07 this one is undervalued. It is even more undervalued at these levels so even more buying pressure. We need this period of consolidation to make the next leg up even stronger. The more shares that we can slide into long's hands the better off we are over the long and medium run.
I am not going to partake in this panic selling. Smart money sticks to the stronger stocks. In all of my daily DD I have not been able to find any other pinksheets or even OTCBB stocks that have nearly as much potential for growth as this one. Even the greatest stocks have down days and this is just such an example. There is definitely money to be made on these dips. Even for swingers. They can pick some up at this level and can expect to get about 50% profits by week's end. I am still a firm believer that this one is worth $0.086 minimum right now without any additional clarification of the recent news.
At first I did the exact same thing. I thought this was a scaled down version of the first LOI, but then it hit me. My guess is that the Grimes wells are already online and they are waiting for a month to post only a valid flow rate and not just the initial rate. They are using the current flow rates to justify funding. They may even use them as collateral. At $7 per Mcf and an average of 1,000 Mcf/day over 4 wells that’s $28,000 cash flow per day. Sure they may use some shares and some warrants in the acquisitions but they will be restricted and closely held. It’s not like they need Cornell or Dutchess or anything like that. They could also take Tyche public and use some of the funds from that to make these purchases. IMO there are just way to many options for this company to settle for toxic dilution. I have still not sold a single share. This one is going higher, no doubt about it. Today was very healthy consolidation. Shake the weak hands and get the shares in stronger hands. Could be a few more days of this leading up to the issuance of Tyche. Management has probably also predicted a sell off following the share release so they will likely hold some information back for after that to stabilize the share price and support these levels. Clearly we are dealing with a very intelligent and forward thinking management team. Long and strong with this BIG ‘N’.
Why would anyone sell at below $0.07 right now? Even if you were daytrading this puppy clearly orders are going through at $0.07 so why settle for less? Just doesn't make sense to me. I'm all for some profit taking but come on, follow the momo and pocket a little more change. Geesh!!
So much support behind this one. Just way to much potential to be selling at these levels. This is the best stock I have seen in three years. Usually I like to flip stocks after a tripple bagger but not this one. Not a single share sold so far. This company should be easily valued at $0.08 RIGHT NOW and over $0.10 with the Grimes news. Then you add in WWNG and if they hit a gusher then we are off to $0.12. Once this TX deal goes through we should see $0.15. Then the name change should be good for another penny to $0.16. Then the move to the OTCBB and continued increase in the price of oil and natural gas. Yeh, this one should easily make it to $0.20 by the end of the year. Pretty soon you will hear this company mentioned on Mad Money. Yahoooo! Have a good weekend everyone.
Well crap, how about $0.064 then? I'll err on the side of caution. LOL.
Looks like we had one seller to get through and now we should start the climb. I'll say $0.065 close for the day. Good luck.
Very nice breather here at $0.06. Good consolidation point. Would be an excellent place to close today unless this buying pressure continues. Long weekend could mean another PR so my guess is that we won't see a drastic selloff at the close, but you just never know. This one is still undervalued even based on my extremely conservative estimates. The TX deal throws a big multiplier into the equation but this is still not factored into the price. Plsu the additional Grimes wells due online at any time now. This one is setting up nicely for a run back to a dime and then off to higher ground from there once they begin slotting wells in TX. Should see $0.20 to $0.25 easily by the end of the year. Outstanding potential. Trying not to fall in love.
OT: For anyone lingering around, might want to check out BIGN. Do some DD and I am sure (100% positive) that you will agree that one is drastically undervalued. Plenty of potential for momentum building in the coiled spring. My WITM profits all drifted over there and I'm not selling until $0.10. Hopefully about that time WITM will be back to where I think it should be.
Someone asked for valuation earlier so I'll take a stab at it.
Here is the formula I like to use to define valuation:
BIGN = Book Value + Net Income (say 10% of revenues) + Potential
This seems to work pretty good for pennystocks. If nothing else it may be on the conservative side. Based on the last unaudited filing the company reported $855,382 shareholder value (assets minus liabilities). That's about $0.0028 per share.
Revenues that I will include right now would only be the Grimes wells and some Hydroslotting. For now let's just use Grimes 1 at 400-450 Mcf and Grimes 2 at 1000-1450 Mcf. I'll use $7 per Mcf for these calculations. I figure that's about $0.0016 EPS if we assume 10% of revenues as income.
Now the Potential section is where the big swag comes in. The only potential I am confident to include right now would be Grime 3, 4 and 5 since we know about what to expect from the flow rate. Also, I'll assume about one well slotted a month and figure that as additional revenue at $200,000 a pop but BIGN only has the rights to 50% of that. For the Grimes wells I swagged about $0.001 EPS per well and for the Hydroslotting I figures a slightly higher 30% margin but only 12 wells slotted over the next year. I came up with about $0.0012 EPS from that.
Tally that up and I came up with $0.0028 (book value) + $0.0016 (grimes 1 and 2) + $0.0012 (hydroslotting) + $0.003 (grimes 3, 4 and 5) = $0.0086 EPS.
According to Yahoo this industry averages just over a 10 P/E. So that means BIGN should be trading at a minimum of $0.086 right now.
These calculations do not factor in WWNG because I had no flow rates to go off of any there is no proof yet that revenue is due out right away. I did not calculate the upcoming letter of intent for the TX company. Both of these are HUGE, but for simplicity I left them out. One could easily argue that these two could double my other figures but I'll keep them seperate for now.
Based on this valuation and the news from today I think we will see a small gap up tomorrow morning and continual growth through this week to over $0.05 and maybe on to $0.06. Keep an eye on NG prices and the WWNG operations as they could adjust these figures in either direction. Hopefully we get more details on the TX deal soon so we can factor that in more.
Good Luck.
Does anyone know the names of the next two wells? They are not being called Grimes # anymore. That was a mistake I made on Ophelia 1. I was doing some DD and came across Grimes 2 on a drilling site that talked all about delays and problems with the well so I delayed buying anymore at a much lower level. I thought I saw something about a well named Andretti or something like that but can't remember if that was BIGN or not. Any help is greatly appreciated. TIA.
I have a suggestion that I would like to toss around. I have been involved with a few "short squeeze" stocks before and the rumor was that if you put your shares up for sale at any price they could not be shorted against even in a margin account. I never called my broker to confirm but it seemed to work on IDWD which I am pretty sure was a short squeeze. So I would recommend that everyone put their shares up for sale at like $0.25. I would think that a short position could look at the asks and if all they saw were $0.25 lining up I would think they would be more pressured to cover at these levels instead. Any thoughts?
I am very excited about what the next few months hold in store for us. Long and strong is the only way to play this one. Good Luck.
Yeh, I was born with a Yankee hat on my head and I went to school in NY. Ace is just a nickname from my best friends back home. Now I live in Colorado and I plan on making a trip up to see the Bates-Hunter Mine if I can link up with some management. The mine definitely has potential, no arguing that. But this dewatering process is going to take forever because the snow caps are melting now and the water levels are rising. It will take a huge operation to get down to where they need to be and I don't think one pump running 24/7 will accomplish that for several months. The company has good management in place though and they are working on other projects at the same time. I could see this one at $1 or more by the end of the year if they play their cards right, but for right now there are just too many others plays I want my money in (BIGN, LFWK, COHQ to name a few). Good Luck.
Welcome aboard grevantime. We appear to be consolidating at this level. I'm waiting to put some profits back in at this point. I'm a bit worried by the fact that we doubled our market cap in less then two months time. While I thought it was undervalued back then, I'm just not satisfied that we should be trading at this level yet. When gold hit $730ish I was confident but with the current downtrend in price I thought we would see a similar retrace by WITM. I still think based on the 6 month chart that we should see a return to the lower bollinger band. Of course I run the risk of missing the tremendous run, but I am ok with my profits to this point. Good luck in your trading.
Does anyone think that there may be a slight sell off following the completion of the Tyche spin off? I would think that some folks would reduce the value of BIGN by the value of Tyche and would therefore sell some of their position. Also you have to factor in the folks that bought late this week just to get the shares and then will dump the BIGN and hold the Tyche.
I agree that selling would not be smart but I think we need to consider the possibility. Anyways, I'm holding a little cash in reserve in case we drop down below $0.03 again following the issuing of the Tyche shares. I am a believer that this technology is cutting edge and this company has its ducks in a row, but like Warren Buffett I am very frugal at which price I will buy even the best company's stock.
Have a good weekend.
Wits Basin PR
Wits Basin Begins Underground Drilling Program in Colorado
THURSDAY, MAY 18, 2006 7:15 AM
- BusinessWire
MINNEAPOLIS, May 18, 2006 (BUSINESS WIRE) -- Wits Basin Precious Minerals Inc. (WITM) has received a report from its project manager, George Otten: "The drills are now turning underground. We have been preparing the site, manpower and equipment these last few weeks and the underground program is now underway. Our plans are to report any information or results of the operation as they develop."
The statement by Mr. Otten is in reference to the drilling program we previously announced on April 26: Minneapolis, Minnesota, April 26, 2006 - Wits Basin Precious Minerals Inc., has received further details regarding the drilling program for the Bates-Hunter Gold Mine in Central City, Colorado.
Dr. Smith has submitted the following statement: "The Bates-Hunter project is now scheduled to begin both underground and surface diamond drilling (core) in the near term. The underground drill program will consist of several holes to be drilled from the 165 foot level. Underground drill targets are three veins known to lie parallel to and adjacent to the Bates-Hunter vein. Surface drilling will consist of holes to test the depth potential of the Bates-Hunter vein and parallel veins beneath the 745 foot level. It is expected that directional drilling from deeper levels in central holes will provide potential for multiple intercepts at depth."
As previously announced, Dr. Smith said, "A compilation of geologic data by Wits Basin's geologist, Mr. Brian Alers, presents evidence that at least three significant veins lie parallel to the Bates vein, the principal previously mined high-grade gold vein on the property. These three veins have remained unexplored. It is recommended that an underground drilling program be conducted at once to test these veins. In addition to testing the potential of these three veins in the upper levels of the Bates-Hunter Gold Mine, geologic information derived from this drilling program will contribute greatly to one of the goals of the project, that being to drill from surface across the entire Bates-Hunter vein system at depths beneath the 745 foot lower limit of previous mining. Mining of neighboring gold veins in the Central City District has demonstrated that high-grade gold ore exists to depths of at least 2,250 feet."
Wits Basin management believes these veins could produce even greater potential for ore than previously believed. Dr. Clyde Smith serves Wits Basin under a consulting agreement associated with Charles Mottley, CEO of El Capitan Precious Metals, Inc.
About Dr. Smith
Dr. Smith holds a B.A. from Carleton College, a M.Sc. from the University of British Columbia, and a Ph.D. from the University of Idaho. He is a registered Professional Engineer with the Association of Professional Engineers and Geoscientists of British Columbia. Dr. Smith has founded or co-founded five exploration companies and is responsible for the discovery of four deposits: the Jason lead-zinc-silver deposit, Yukon Territory, Canada; the Santa Fe gold deposit, Nevada; the North Lake gold deposit, Saskatchewan, Canada; and the Solidaridad gold-silver-copper deposit, Mexico. He is currently engaged in a gold-platinum project in Nevada and serves as the consulting geologist for El Capitan Precious Metals, Inc. on its El Capitan gold-platinum group metals project in New Mexico.
About Mr. Mottley
In addition to his active service as President and CEO of El Capitan Precious Metals, Inc. (ECPN) , Mr. Mottley serves as a member of the Board of Directors of The National Mining Association.
About Wits Basin Precious Minerals Inc.
We are a minerals exploration and development company holding interests in three exploration projects and currently do not claim to have any mineral reserves on any project. Our common stock trades on the Over-the-Counter Bulletin Board under the symbol "WITM." To find out more about Wits Basin Precious Minerals Inc. (WITM) visit our website at www.witsbasin.com.
OT: I believe LFWK should be on that list as well if I am not mistaken. Either way they are growing at similar rates thanks to the merger.
Very positive momentum building now. Only 28 units sold and we got a 17% jump. Some may have been expecting more but that is just fine by me. I'm expecting about 10-15% rise per contract of this magnitude. Now imagine a contract for say 100 units. Probably a 25% spike on a PR of that caliber. I still like the buy and hold potential of this one. A contract a week would be outstanding. Then maybe by the end of the year I'll take a look at my position. I predict we see another run up over $0.01 by the end of the year, IMO. GLTYA.
Wits Basin PR
Wits Basin Announces Update to Colorado Assay Results; Management Believes Veins Could Produce Even Greater Potential
MONDAY, MAY 15, 2006 7:15 AM
- BusinessWire
MINNEAPOLIS, May 15, 2006 (BUSINESS WIRE) -- Wits Basin Precious Minerals Inc. (WITM) has received further details regarding the 7th set of assay results from the Bates-Hunter Gold Mine in Central City, Colorado. Results as reported by Brian Alers (PGeol): "A high-grade sample of the coarse grained chalcopyrite (CuFeS2) bearing center of the vein contains 2.625 ounces per ton gold (BH-5087). Final Gold fire assay values indicate that the 3-4 inch wide vein exposed base of the -163 foot pillar contained 1.750 ounces per ton gold (BH-5085). The vein in the top of the -163 pillar, approximately 8 feet above the floor, contains 1.126 ounces of gold per ton and 5.55 ounces of silver per ton (BH-5072). A 1.9 foot wide channel sample across the top of the pillar contains 0.426 ounces of gold per ton and 2.05 ounces of silver per ton (BH-5075)." The entire report listing all tested elements and results will be posted on the Company website. Mr. Alers indicated, "...the vein exposed in the pillar is getting higher grade at depth."
Commenting on these results, Dr. Clyde Smith made the following observations: "These recently received assay results tend to confirm that the grade of gold ore previously mined in the Bates-Hunter deposit was well within the range of potential ore grades at current gold prices." Dr. Clyde Smith serves Wits Basin under a consulting agreement associated with Charles Mottley, CEO of
El Capitan Precious Metals, Inc.
About Dr. Smith
Dr. Smith holds a B.A. from Carleton College, a M.Sc. from the University of British Columbia, and a Ph.D. from the University of Idaho. He is a registered Professional Engineer with the Association of Professional Engineers and Geoscientists of British Columbia. Dr. Smith has founded or co-founded five exploration companies and is responsible for the discovery of four deposits: the Jason lead-zinc-silver deposit, Yukon Territory, Canada; the Santa Fe gold deposit, Nevada; the North Lake gold deposit, Saskatchewan, Canada; and the Solidaridad gold-silver-copper deposit, Mexico. He is currently engaged in a gold-platinum project in Nevada and serves as the consulting geologist for El Capitan Precious Metals, Inc. on its El Capitan gold-platinum group metals project in New Mexico.
About Mr. Mottley
In addition to his active service as President and CEO of El Capitan Precious Metals, Inc. (ECPN) , Mr. Mottley serves as a member of the Board of Directors of The National Mining Association.
About Wits Basin Precious Minerals Inc.
We are a minerals exploration and development company holding interests in three exploration projects and currently do not claim to have any mineral reserves on any project. Our common stock trades on the Over-the-Counter Bulletin Board under the symbol "WITM." To find out more about Wits Basin Precious Minerals Inc. (WITM) visit our website at www.witsbasin.com.
How did we trade 28 million shares on Friday with no news? That equates to about $70,000 in trades. My only guess is that we have new short interest. I've checked www.buyins.net and PLKC is not n the list. If anyone has a better site to check please let me know. IMO we could have a short squeeze stacking up if the company can turn things around and produce a contract or two. That should make the next run equal to the last. So we may see north of $0.02 again. Long and strong.
Short interest update.
According to www.buyins.net there are currently 356,364 shares shorted and the position was opened initially 8 trading days ago. I estimate that to be about $0.48 per share. All that means is the next run will be even sweeter.
My screen shows $0.0025 so we didn't quite make it back to the open, but at least it came back a bit. Hopefully over the weekend people will DD this one and realize it is undervalued. If anyone talks to the company's management plese continue to highlight that only product innovation and differentiation survives in this industry. Doing the same thing that everyone else does and trying to compete on price is a recipe for disaster. I did see some comments in someone's post that they are working a deal with someone to use the TRANSTRACK in conjuntion with their video capability. Now they're talking! Next we need them to look into more municipality deals. Heck, even if they copied HISC's business plan to market to ports they could steal some of that market. Maybe I am just ignorant. Perhaps there is a huge demand for lower cost units and if that is the case then the company is moving in the right direction. I'd just like to see more differentiation or focusing on a niche market. I'd also like some updates on their old mexican deal (even if it is no longer).
Looks like we had one seller this morning and he is done. We should recover to the opening price of about $0.0025/6 by the end of the day. Nice entry point for new investors or a good chance to average down.
Wow, bashers are out in full force today. Usually that is a good sign to buy. I've read many wise tid bits of advice that say to buy when everyone else is selling and sell when everyone else is buying. Clearly today there is a sell off going on. Honestly I totally understand your frustrations. The 10Q was not impressive, but at the same time it did not paint a gloomy picture. If you're a day trader this one is not for you. If you have some funds to let sit for, who knows, maybe up to a year, this one could still pay off. Heck, they are in the process of acquiring another company. They have been able to convert most of their debt. That does not sound like the action of a dying company. Once this merger completes the company will likely release news of a new contract or two and we will see a pop. How long that will take is anyone's guess, but when it does we will see at least a double from this level. At about 800 million shares this one is trading at less then $2M market cap right now. The developed technology and current existing contracts (with potential for increased sales) is worth much more then that. So maybe there is a billion shares out there with the naked shorting and all. That's still only $2.4M. Anyone care to venture how much it would cost to develop this technology from scratch right now and build even a small sales and marketing force? I'd venture to say more then $2.4M. My guess is that the next contract released justifies a $5M market cap. That makes for a nice bounce off of this low.
Please refrain from personal attacks and uses of vulgarity. This is not Raging Bull and around here they do not tolerate that crap. I encourage anyone who does not want this to turn into another RB to report these offenses. This is nothing personal against those that slipped, just want to keep this board clean. I hate RB and seldom go back there.
IMO if someone takes some profits that is healthy. If the stock goes up they made a conservative decision and if it goes down they made a great decision. The selling of one investor will not have a long term effect on the stock. I got the chance to pick up some more cheap shares lately so I am not complaining.
I think many of us were expecting more along the lines to closed deals instead of potential for future deals. I still think we have a solid base here at $0.003. I'm holding long term to give them a chance to get the sales they are promising. Also, if anyone talks to Dewey please mention that we would like to see them find New and Innovative ways to use this technology instead of taking on the competition head on with price. Differentiation is a far better way to survive then to compete on Price.
We should see a base form around $0.03 as anything below that should be considered a bargain based on recent news and I guess there will still be profit taking above $0.03. IMO we should level off here until the next flow rate release or big slotting deal. Good chance to accumulate here. I got another block of 30,000 today. Good Luck.
Wits Basin PR
Wits Basin Receives Subscription Agreements on the Exercise of 15 Million Common Stock Purchase Warrants; The Company Expects to Receive Approximately $3.9 Million
THURSDAY, MAY 04, 2006 7:04 AM
- BusinessWire
MINNEAPOLIS, May 04, 2006 (BUSINESS WIRE) -- Wits Basin Precious Minerals Inc. (WITM) today announced it is completing on a round of financing through the exercise of issued and outstanding warrants to certain warrant holders who qualified as accredited investors. For each two warrants exercised by the warrant holder (at a price of $0.25 per share), they received two shares of common stock and a new three-year warrant (with an exercise price of $0.50 per share). Certain of the warrant holders were offered a limited time reduction of the exercise price (in which the warrants were originally price from $5.50 to $0.75 per share) of $0.25 per share. The Company received subscription agreements to exercise approximately 15.8 million common stock purchase warrants and as a result, expects to receive approximately $3.9 million in cash.
Vance White, CEO, commented, "We are very pleased by the commitment evidenced by our warrant holders. This cash infusion into Wits Basin will allow us to rapidly accelerate our growth plans both domestically and internationally."
About Wits Basin Precious Minerals Inc.
We are a minerals exploration and development company holding interests in three exploration projects and currently do not claim to have any mineral reserves on any project. Our common stock trades on the Over-the-Counter Bulletin Board under the symbol "WITM." To find out more about Wits Basin Precious Minerals Inc. (WITM) visit our website at www.witsbasin.com.
CanAm, according to the company's unaudited annual report for 2005 BIGN has a 50% JV with Hydroslotter Coporation. Looks like they invested about $220,000 in the technology. A note in the report says they have received a total of $30,000 in cash thus far from this technology. I beleive they will be selling this technology to other companies and not just slotting BIGN wells.
The company's business model appears to be to use the current revenues to slot additional wells and continue to acquire additional well interests. The beauty of this investment is that it will not take years to see it work, instead we are only looking at a few months to really be cooking now that we got our first real gusher.
OT: Hey starboy, since I'm too cheap to pay for the membership I was wondering if you could send me a PM with an email address that I could reach you at?
Thanks
Hi Starboy, I've been fine, just waiting for my positions to run now. I really like BIGN. I've been watching Morning Call this morning and they are talking about rate sensitive stocks and O&G exploration stocks. They said the big money is running into natural gas again. So I'm holding at least for a few months when demand will increase once again and justify much higher prices. I beleive in the technology and I think that with a few more productive Grimes wells and the price of NG back around $10-12 this stock should easily be worth more then twice what it is now. Throw in the Tyche potential and you have a no brainer. Looking back now I just wish I had backed the truck up when I had the chance. Long and strong here, not selling into this mild run.
It appears the price of natural gas has turned the corner from the recent downtrend. The bottom appears to be $6.5 and we are hovering near $7 now. The one year chart is just crazy with a high (closing price) of about $15.50 and a low of just over $6. This low is about right from last years summer months plus inflation. Looks like we go up from here the rest of the year. IMO this may be a reason that the company has not brought Grimes #2 completely online. Why not wait a month or two when the price will bring another $1 per MCF? That would seem to bring more bang for their buck (15% higher revenues). If I were in charge I would continue drilling the wells and prepare to bring them online around the August time frame. Then when the price runs back to $10 due to increased demand we can really cash in.
I'm on board here. Accumulating anything under $0.02. Once we break $0.022 we should fly, IMO. Need to prove this technology and get the word out there with some more successful wells. This one is drastically undervalued. Around 281 million outstanding shares (perhaps more now). So I'll estimate 300 million shares outstanding at $0.02 is a measly $6M. This one is worth $10M today IMO. Especially an O&G play with oil prices where they are. Go baby go!
Pretty quiet around here lately. Anyone catch wind of whatz up? Volume is dry so I guess we are all in a wait and see status. All it will take is a contract or two to get us moving back to $0.01. I like their chances. GLTA.