This post is in reply to both Hostastock and Auditor1, both of whom I thank for giving me credence. I'm going to "rifle off" a bunch of thoughts, and hopefully something herein will resonate with one or both of you:
1. See my post #4191 on May 27 on this Board for my derivation of how I think the stock would be worth 9 cents per share in about a year from now if and when the Company would have attained $10 mil in gross revenues.
2.Read with a lot more credence than you give me whatever Sgreg posts whenever he does, as he is better both analytically and as to "having a feel" for the penny stock market.
3. If I think the stock will be worth 9 cents in a year, you'd think it would be a slam-dunk answer to Hostastock's question that I'd buy the stock right now. But it's not so simple. The stock could be worth anything between Bupkes and say 15 cents in a year (it's not going beyond Gotama's conversion price in awhile, I would believe). Whether you buy/hold or not depends on your risk tolerance. The Company really could run out of money either by not selling enough but even also by selling so much that it will be really challenged to get the funding to tackle the growth in inventory and accounts receivable.
4. The greatest risk to this company and to its stock is the concentration of family in management/board.
5. The second greatest risk to the stock is Gotama's "compelled" holding of its 4 million or so shares. I got beat up on this Board in my early days here when I wrote that conversion was at the option of VHUB, as no believed such a clause would ever be allowed by a lender in a debt instrument - but this was one of those occasional moments when I was correct.
6. I learned about the world of pump and dump last year as I saw the stock go from about $1.80 intra-day down to $.006. Fortunately, I was just an interested spectator. I think all the "victims" must have done their tax loss selling last November and December, so I don't think there'd be much of an "overhang" on the stock from the victims going forward at this point.
7. I actually believe that management had little to do with the pump and dump, as they would have unloaded some of their 38 million shares in that process. I think that they stood by silently as the Doggie Inn folks ran that show - this is just a semi-educated guess, and I ask forgiveness from anybody I may have incorrectly maligned. But I do think that management could have done better ethically by publicly disavowing the pump and dump efforts - and press releases touting the company that were frequently issued during the pump and dump should have been responded to with more restrained facts then available to management.
8. I follow a bunch of penny stocks these days for the sheer fun of it, and I enjoy SportyNorty's board a lot in my leisure afforded by retirement. One thing that strikes me about recommendations from that source is that nearly every stock is down about 90+ percent from its high, and the play revolves around what the analyst thinks is an inevitable bounce. But in the end, most of those stocks tank after that bounce. The point here is if let's say 80% of penny stock companies eventually go out of business, then a company which has only a 40% (let's say) chance of going out of business is relatively a good investment if it has a high upside. ...and that's where I think VHUB fits into the picture. Given its fine products (attribution to Hosta and RPH here), this company could really be in on the ground floor of the vaping revolution. I even think that such is the case, more likely than not. But "not" may have a 40% chance of happening due to working capital needs and "parochial" management.
I hope somehow this post has been worth your investment of time. I'm going to be offline Monday and Tuesday, FYI. Thanks, gentlemen!
