Asberry 22 Holdings Inc (ASHI)

[bernardsamuel]

I'm sorry, Lakingsphan and others, but my own initial impression is that this quarterly report is presenting a "fustercluck" situation. The ratio of cost of goods sold to gross revenues appears to have increased in the third quarter from that attained in the first six months (despite all the wording we've read about how more higher-margin products are being sold).

Further,the ratio of general and administrative expenses to gross revenues appears to have actually increased in these most recent three months compared to the first six months, despite the avowed intent of the company to pare down these costs.

Regarding the balance sheet, the current assets have actually dipped below the current liabilities. I'm working from memory here, but I believe that there was a positive current ratio at the end of each of the first two fiscal quarters.

Regarding the footnotes, the "going concern" section is not surprising and doesn't seem much changed from before. They're honest about needing more money to stay in business, whether the money comes from loans or from sale of stock. My earlier post today referenced the solicitation for new equity capital.

I'm going to leave it to others wiser than I am, and who are more experienced than I in the penny stock arena, to reach their own conclusions as regards whether the stock is a buy at current levels. It does seem clear to me, however, that so much depends on what the response will be to Mr. Knopick's letter - if you can picture the company hosting a bidding war among those who express an interest in putting one to five million dollars into the company, then you're bullish on the stock.

I'm interested in what others are thinking. Again for the record, I'm not, and never have been, an investor in the stock. I got interested in the company about a year ago when I got a series of "pump" e-mails from the Investor-Edge folks.