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I think the most interesting question is if CDED will ever receive the DataFuzion shares referred to more or less one year ago. I have doubted that there was much reality to this "deal". Time will show if I was too pessimistic.
The stock is priced for disaster if the numbers are right but grossly overvalued if there is next to no real revenue. What is the true picture? You would be more convincing if you are able to demonstrate that textileguru is wrong. After all he seems to be very well informed.
The audited numbers were without value because the Bangladesh operation was not audited if I remember correctly.
I think we can hope for but not expect substantial news in the near future. I also expect that we must be willing to wait for half a year or more for the stock price to take off - if CDED achieve its projected revenues and there is a profit.
I assume you are an individual investor but I also think you are a naive fool to pay much attention to the numbers presented by Mr Matin.
I think that you are a great fool indeed if you take those numbers seriously after reading this board.
ot Hobbies/interest
I wonder what percentage of the people who read this board understand what those two words refer to. I suppose you should have been a university professor teaching Latin.
I suppose this means that the pps will recover on Tuesday. Companies rarely put out negative news.
I think he has been an insincere hyper who last lost his hope that he will be able to make a profit short-term.
Since it was traded at the bid it is likely to have been a sell.
Apology accepted
I try to see things from different angles at different times.I am no consistend basher or hypster which causes some posters to dislike my posts depending on their own attitudes.
goose
I am loath to take a big loss as long as I still have some hope. Due Dillinger finds me too optimistic by the way.
I am. One interesting point now is if CDED publishes information on Monday morning that is bullish so that the price does not plummet for the advantage of the new source of financing. That may be an indicator as to the question if management takes care of the interest of the owners of CDED.
Is selling 300 million shares at a third of the current stock price very good news???
It is obvious that the industry is poised for greag growth. The question is if our company will be able to compete well with the other contenders in the field.
My impression is that he is interested in staying on. He has some knowledge of the business sphere the Kelly companies are engaged in and I think it is in our interest that he stays on for a while. Right now I put more confidence in him than in Mr Kelly.
The problem is that it seems to be a long time before that information is available if the Bangladesh numbers are not included in the audit for 2003. If that is the case the audit for 2004 may be more or less worthless too.
What news about Berman do you refer to?
At least I am absolutely convinced they are needed at this stage. There is hopefully a fair chance that they can stop the bleeding of the Kelly companies but the terms are a lot less favorable for the CDED shareholders than I previously imagined because the Kelly companies have little worth in my book.
chucker
What sort of news do you refer to? Mr Kelly is a business giant no longer. He now looks more like a pathetic third-rate novice as far as business is concerned. (My basis for this view is the filed information about the results of the wholesale drug business
Basically I think you are right in the sense that it may have led to delays in dealings with the SEC. But I don't think management at CDED has so cold feet that there is any question of reversing the merger at the present point of time. One possibility is that Mr Kerry may get fewer shares than assumed because CDED will hardly continue entering into unprofitable deals. This may possibly reduce revenues so that Mr Kelly will not get as many shares as the maximum that has been agreed on.
What explains the big losses?
This is just my guess. I assume a wholesale business can do business in a conservative and in a speculative way. The conservative way would be to only do deals when both price and quantity are agreed with both sellers and buyers so that one can be sure the deals will be profitable.
A speculative way of dealing would for the wholesaler be to buy a certain quantity of drugs at an agreed price before it has entered into contracts with buyers at the retail side. If the wholesaler evaluates the market wrongly it may have to sell the drugs for less than it has purchased them for. This is a risky way of doing business. Possibly this is why Mr Kelly has run up big losses in his wholesale business.
There has been a SEC filing which shows that the wholesale drug business of Mr Kelly has been doing terribly running at a big loss. This would seem to indicate that this business is pretty worthless. It is my impression however that those losses will not continue now that Mr Kelly is no longer at the helm. The question is what revenues can be generated now that only transanctions that are clearly profitable will presumably be entered into. This fresh news shows that the hope that Mr Kelly is a very profiscient industrial leader was unfounded. This is a sad recognition for me who had great faith in him on the basis on the information that has been available about his companies until recently.
It is also a point that has been made clear before that CDED will not assume the negative worth of the wholesale business. Mr Kelly will have to pay for those losses himself.
I have got the impression from my exchanges with Mr Berman that shareholders have some shareholders have caused a lot of trouble for the company. At this stage it is hardly in our interest to call the SEC. One of my mistakes is that I have thought that Mr Kelly was an accomplished businessman. The financial performance of his company suggests that the opposite is the case. It is natural that the dire state of the Kelly companies has only gradually been revealed to the CDED management and that they have been in a difficult position dealing with the unpalatable facts of the Kelly companies as they gradually came to light. It may be that the poor state of the Kelly companies has also caused the delay in relation to the SEC.
grand
My impression is in one way exactly the opposite as far as Mr Berman is concerned when it comes to finding an exit. I get the impression that he sees this has possibly his last opportunity to participate in a grand business endeavor in his life in view of his age. This does not suggest that he wants to exit even if he may be as disgusted with the shareholder base as others.
I fully agree with this post. I think Mr Kelly has not been fully aware of the dire financial performance of the company but I also guess he has not let on what he knew because that would not promote the merger which he so badly needed. Perhaps the terms would have been even better for us if the real financial position of the Kelly companies had been known from the outset? I do hope his connections can be of some value in the future. Right now I pin most of my hopes on Mr Berman as far as personalities are concerned. He is knowledgeable about finances and the business I think.
Mr Kelly may be a man of vision and possibly relistic visions. But the fact that he seems to have proved that he has been unable to lead his current companies in a sensible way creates a fear that his visions may not have sufficient contact with reality. I don't claim that this is the case but I would have found his visions more reassuring if he had proved that he cound create profitable companies in this sector too.
The numbers are pretty diastrous but I doubt they detract too much from the credibility of Mr Cox and Mr Berman. I think these two officers of CDED have been taken in by Mr Kelly. But those numbers seem to reflect very badly botn on Mr Kelly's honesty and his business acumen.
I think there were some numbers published several months ago - may be August or thereabouts.
I don't think that is true. I think I remember that some numbers have been published as to the revenues of the wholesale drugs business. Last year I think it was in the range $ 100 million.
I suppose it can mean different things. One possibility is that most of the shareholders give two hoots as the how the compeny is doing fundamentally since they are just out to make a quick buck. There seems to be evidence that this is the case. The company has found that most of the shareholders are shareholders for a short period of time. They are short-term speculators it appears.
My view that what you state will be the case. The problem is the way I see it that the Bulletin Board is dominated my mindless traders. If the company had been quoted on AMEX for instance fundementals would have been much more relevant to the pps.
A serious stock exchange?
I think it may be wishful thinking to assume that this company will be admitted to AMEX og NASDAQ any time soon. I think there is also some ethical screening. This company seems to have as its highest goal to keep the market in the dark. This is shown by its gagging the T/A so that the market will not know one of the most important facts about a company - its current sharecount. This is an exceptionally imortant number as far as this company is concerned since its sharecount has exploded both in the recent and more distant past. The misleading PR's are another factor.
The implication here seems to be that it may take a good deal of time for the buy-in to take place and that it will take place gradually. But if there is an explosing of volume a substantial short position would add to the rise in pps.
Would not some of them have raised their bids if they had wanted shares badly? The slow trading now suggests that there is no substantial short position after all the way I see it. We will see on Monday I suppose.
I think it reflects the fact that the bid is exactly 2 cents and the the fact that the price has retreated a lot from a percentgage point of view even if the volume of trading has been very low.
Audits
"I think that the 2003 audit will be out sometime during Q1 of 2005. What I doubt is that it will privide any insight into the fiscal doings of the overseas divisions".
If that turns out to be the case a 2004 audit will be almost worthless.
It is a point in this connection that the float was then much lower. Therefore the volume of trading may have to be that much higher to take the pps to the same level.
My guess is that at least two succeeding years are necessary to get the true numbers for the last of those two years. For instance if the company had a lot of goods at the end of 2003 whose value was greatly underrated it would be easier to make a nice profit during 2004 than if the opposite was the case.
Was that not my point? Because this is so we can expect CDED management to see to it that the merger goes through.