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I heard the same. He said to me that they were deliberately moving slowly toward that pre-factory goal of 20,000 patients on the drug because there was a learning curve with the distribution process and they wanted the distribution channels to be smoothed out prior to full scale production. Like you I see any revenue as a positive and I know it will grow each month.
At the meeting a woman from the Nigerian govt said people could afford the drug and the govt was backing it and 'you have no problem once the factory is completed'. That was a very positive experience for me to hear that from someone from the Nigerian government.
Things will only keep getting better here IMO.
Looks like I got in at a good time!
Yeah I think it will break out but like you I don't know when. I am starting to think that it is more a case of swing trading than anything else. Bullish pressure should continue to grow as we move into the future IMO. We know we have two potential news events that will move it in the near term and then revenue growth each quarter some it is just a matter of time IMO.
I don't know and don't care. (Not trying to sound like a jerk here just the truth) I'm not day trading this stock. My view is that we will have exponential growth in the future so I'm just waiting. When Nigerian government officials say people can afford the drug and it is no problem it just is a matter of time IMO. We'll move with more loan news and any pre-purchases and of course each quarter as revenues grow.
I guess that is how we make money. Identifying situations where the market has not realized the value of something yet. It will though.
GLTY
Smartmoney77
I don't think it matters. IMO Loan news will move this and any possible pre-purchase. The impression I got at the meeting was that we will continue to get a steady stream of good developments over the next couple months.
Can I play too? Picked up a million shares...GLTA
Keep thanks. I do feel much better about my investment and I came away with the impression that we will continue to see growth and positive developments. These guys aren't playing defense, they're on offense and looking to grow.
GLTY
Smartmoney
Just got back. XKEM looks strong last two days. Ace you'd have to be stupid to sell down here IMO which is based on extensive DD. I have no doubt about that. If you want to play the swings have fun but anybody doing that would be selling in the mid .03s not down here.
Shareholder Meeting Update!!!
Just a brief update.
1) The company went on a break after the vote was approved for the board members and the A/S increase to 5 billion and announced that they decided to restrict it to 3.5 billion without further shareholder approval. The board was heavily applauded for that action. This does not mean that they will dilute to 3.5 billion. This was a demonstration that they do have protecting shareholder value as a priority. Further dilution is not a concern since they got the loan and they said this allows them the flexibility to buy out smaller companies etc. IMO the fact that they did the above shows their concern for shareholder value. I have never seen a company do this.
2) They are expecting approval of the Nigerian loan of 4-5 million but of course it isn't official until it is approved.
3) There were two Nigerian govt. officials there and they said the people there can afford the drug it is not a problem and Xechem has the backing of the govt. They said once the factory is complete not to worry because people are waiting for this drug. They also said not to be confused by politics there. Government officials back the drug and it doesn't matter who is in office. Similiar to the post office delivering mail here regardless of who is in power.
4) As I've already posted in the past the company is deliberately going slow with getting to its pre-factory target of 20,000 patients on Nicosan in order to smooth out the distribution process prior to full scale production.
5) The board did not want to give revenue projections because the market is too large and there are too many variables. Even though I asked I don't blame them for not answering the question.
6) To address the possible issue of shorting Xechem the company has requested that it be removed from the Berlin exchange.
This is all I can think of right now because I don't have my notes with me and I'm traveling. It was a pleasure meeting Nordica as well.
I don't know what to say other than I think this company is going to be a monster in the future and anyone that understands what I posted above should be very happy. My impression from the meeting and convesations is that we are going to continue to see good news flow from this company.
BTW- I can't actually believe people sold this stock in the past based on Pandey's speaking ability. I was impressed with Pandey and the whole boards competence and sincerity and speaking ability.
Good luck,
Today, Very Smartmoney77
PS For the real slow learners. XKEM reduced its authorized shares from 5 billion to 3.5 billion!!!! The outstanding shares are obviously much less than that.
Talk to you all on Thursday.
Diamond
I think you are right. The way I understand it is that they needed 300 million to meet contractual obligations all shares above that are simply a hedge to keep control and prevent a takeover. The A/S increase doesn't even matter to me at this point since dilution isn't an issue. I'm going to the meeting to find out what the future will bring with XKEM.
Smartmoney
I personally have never had a problem with Schwab trading XKEM. They called me once to verify purchases because they ranged a lot in size.
There may be manipulation here but it is also likely that many dumped into the run that bought XKEM below .02 and have been holding and didn't sell on the last run up. I'm guessing that when .032 failed some longs dumped and are buying back now.
I don't buy into any conspiracy theories about XKEM directors or employees. AIMO.
Have a good weekend all I will take notes on the meeting as others probably will too.
I think people need to decide if they are going to have a traders or investors mindset here. If you have a traders mindset buy on the dips and sell on the peaks. If you have an investors mindset allow your investment to grow and get a huge reward in the future. Or do a little of both holding a position and trading part of it. You can't be an investor and have a traders mindset.
Whining and complaining doesn't really serve anybody it makes you feel like crap and does the same to the people reading it.
I agree it is a no brainer now that they got the loan IMO.
OT: AWYB - OMG if he does that we could see $10 PPS real fast!
OT: AWYB Did you say dividend????
I did the same thing. But I think it is you take the wife ice skating again or out to lunch. It worked two days ago....
.02 per earnings share PE 30 =(industry average).60 PPS
.04 per earnings share PE 30 = 1.20 PPS.
.06 = 1.80
.10 = 3.00
Phrenz-BTW-Great post.
Drift, I won't do any whining, venting, or complaining, only losers do that. After all the company is delivering on that August Q&A PR. I will inquire about what they will or can do to protect shareholder value including addressing the issue of possible naked shorting. I also want revenue projections with timeframes among other things on my list of questions.
GLTY
Smartmoney
A green day would do wonders.
We are waiting on another loan. It could happen before or after the shareholder meeting but that should move it and also a possible pre-purchase.
Why did you deliberately discount another loan that XKEM is waiting on along with a possible pre-purchase as events that will move the stock price in the near term in your last post? If you are that clueless about a stock then you shouldn't post about it as if you know what you are talking about. Instead you should ask questions should educate yourself and learn.
Also, why do you do you only bring this up after you sell. It appears that you are bashing this stock when you are out so that you can get back in at your desired re-entry point.
Mediascam does bash often he just uses his tea leaves or TA as a cover. I have nothing against flippers but he happens to be one of them that bashes when out it is that simple.
I think it may be naked shorting. I watched yesterday closely and it looked like they were holding the bid and ask down despite market forces and they probably shorted even more to help hold it down. This stock has moved higher on less volume since 8/25 and certainly less fundamental prowess.
I'm sure some of it was profit taking but there is another loan and a possible pre-purchase coming in the near term. The market has to correct itself and go back over .03 tomorrow IMO.
What is your average PPS?
Keep in mind this stock is only down if you bought at the highs of late June to mid July. If you got in in August it has been very stable, (too stable I want it to break up) and it is trading much higher than where it was in the winter and spring. Don't get me wrong todays trading didn't make me happy either but most of the risk has been removed at this point IMO
Mr Pennypacker
I am no expert but here is my view and keep in mind that I am just an investor like yourself and have to do some guessing within my guess. Lucky I am good at guestimating in general.
I figure if XKEM were earning the minimum of 200 million from Pandeys PR a year or so from now half of that would be profit (just a guess based on lower labor costs in Nigeria etc.)that would place the PPS at $1.20. According to Yahoo/Finance the industry average PE is 30. (.04 Earnings per share x 30). This is all based only on one drug, growth companies can go higher and in my mind yesterdays loan validates these future revenues. I have to believe the market is going to start allowing the PPS to reflect at least a portion of this potential future revenue over the next few weeks and months. I kind of agree with Jab's earlier figure of .25-.35 as fair value based on potential here. I still think we should see .25 before the end of the year based solely on the fact that we know our factory is going to be built now..
A 25 million pre-purchase in my mind should put us at 10% of that which would be at least .12 based solely on revenues but like I said the market should allow the PPS to reflect a portion of that future revenue like it does with other drug companies and we should be much higher than we are.
After all that I guess I don't know how to answer your question because I still don't know how or why the PPS is this cheap based on the above. Also please keep in mind I'm doing alot of guessing here but one thing for certain in my mind is the market is wrong right now. This is not a .0265 stock. Hopefully like I posted earlier this is a delayed reaction and as time goes on the PPS will start to reflect the reality of the situation as we move closer to factory completion.
Smartmoney
I'm with the bank.
They could change the CUSIP that forces the issue I think.
You were right, you just didn't know you were coming on board to row....
Bottom line is nobody lends that kind of money unless they think you have the revenue potential to pay it back because XKEM does not have the assets to cover that loan. Hang tough and we will all be rich IMO.
Kers post history reveals what he is.
When XKEM is pulling in 2 billion in revenues the stock will be $15 to $30 PPS. I think you meant 200 million to see a $1-$1.50 plus stock price.
Pure speculation but I feel a strong close coming. People need to remember we are waiting on another loan.
Yeah. Might be up time again.
Ace another loan deal is imminent IMO. I'm not worried. Try to be a little more creative than 'Chassman'.
Good Luck
Smartmoney
Here you go Ace.
No more risk IMO. This is now the best investment on the OTC just thought I'd remind you.
Good Luck
Smartmoney
U.S. Ex-Im Bank has Approved Comprehensive Guarantee to Support $9.38 Million Loan from UPS Capital to Xechem Pharmaceuticals Nigeria
Wednesday October 18, 12:46 pm ET
NEW BRUNSWICK, N.J.--(BUSINESS WIRE)--Xechem International, Inc. (OTC BB: XKEM - News) announced today that the United States Export Import (Ex-Im) Bank, the official credit export agency of the United States, has approved a Comprehensive Credit Guarantee to support a $9.38 million loan from UPS Capital Business Credit to Xechem Pharmaceuticals Nigeria, Ltd. (Xechem Nigeria). Two Nigerian banks, Access Bank Plc. and Diamond Bank, Plc., are to provide the required Nigerian local bank guarantees in favor of Ex-Im Bank.
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Funds Earmarked for Establishment of State-of-the-Art Pharmaceutical Facility in Sheda Science Village, Sheda, FCT, Abuja, Nigeria
The funds to be provided by UPS Capital under the Ex-Im guaranteed loan will be used to purchase the U.S. manufactured plant equipment and machinery needed by Xechem Nigeria to establish a state-of-the-art pharmaceutical facility. The first phase of construction of the new facility began in July of this year. The total cost of the project is estimated at $12.45 million, of which $9.38 million will come from the U.S. loan. The expanded pharmaceutical facility, once completed, will enable Xechem Nigeria to produce commercial scale quantities of NICOSAN(TM), Xechem's breakthrough medicine for the prophylactic management of Sickle Cell Disease (SCD).
Xechem Nigeria received regulatory approval for the manufacture, sales and marketing of NICOSAN(TM) from Nigeria's National Agency for Food and Drug Administration and Control (NAFDAC) on July 3rd, 2006, and officially launched the drug just a few days later at a ceremony presided over by His Excellency, General Olusegun Obasanjo, the President of Nigeria. The drug is currently being produced by Xechem Nigeria in limited quantities at its pilot-scale facility in Abuja.
Dr. Ramesh Pandey, Chairman and CEO of the Xechem Companies said, "We are very pleased that this most anticipated guarantee from the U.S. Ex-Im Bank has now been approved and that we can now accelerate pursuit of our dream of building what we believe will be one of the finest state-of-the-art cGMP standard pharmaceutical facilities in Nigeria. Even more importantly, the Ex-Im guaranteed loan will help insure that we can produce commercial scale quantities of NICOSAN(TM) to meet the needs of the millions of people afflicted with this terrible disease. We are very grateful to Ex-Im Bank, UPS Business Credit, Access Bank and Diamond Bank, as well as our financial consultants, Financialbridge, Inc., for their support for this important project and for helping us make the dream a reality."
About Sickle Cell Disease
Sickle Cell Disease (SCD) is an inherited blood disorder caused by an abnormality in the hemoglobin molecule. Patients with the disease often produce stiff, abnormally shaped red blood cells that often do not flow freely through the blood vessels. This can create clogs in the vessels, which in turn can cut off the flow of normal hemoglobin and oxygen to parts of the body, and can cause severe painful attacks or "crises", damage to various organs and shortened life spans. People with SCD often suffer unpredictable painful crises several times a year lasting from a few hours to a week or more. In the US, there are approximately 80,000 patients with SCD. In Nigeria, that number is believed to be approximately 4 million, with an estimated 10 - 12 million sufferers throughout the African continent. Worldwide, at least 16 million individuals are believed to be afflicted with SCD.
About Xechem
Xechem International is a development stage biopharmaceutical company working on Sickle Cell Disease (SCD), antimalarials, and antiviral (including AIDS), anticancer, antifungal and antibacterial products from natural sources, including microbial and marine organisms. Its primary focus is on the development of phyto-pharmaceuticals (Natural Herbal Drugs) and other proprietary technologies, including those used in the treatment of orphan diseases. Xechem's mission is to bring relief to the millions of people who suffer from these diseases. Its recent focus and resources have been directed primarily toward the development and launch of NICOSAN(TM) (named HEMOXIN(TM) in the US and Europe) for the prophylactic management of Sickle Cell Disease (SCD). With the recent Nigerian regulatory approval of NICOSAN(TM), Xechem is now scaling-up the commercialization of the drug in Nigeria and making preparations for the pursuit of US FDA and European regulatory approval. In addition to NICOSAN(TM), Xechem is also working on another sickle cell compound, 5-HMF, which it has licensed from Virginia Commonwealth University.
Forward Looking Statements
This press release contains certain forward looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by safe harbors created hereby. Such forward looking statements involve known and unknown risks and uncertainties
He knows that.