Asberry 22 Holdings Inc (ASHI)

[bernardsamuel]

For whatever this may be worth, I thought that this might be a good time to "resurrect" the Company's presentation at the LD Micro Investor Conference this past June 2:
[url]https://www.sec.gov/Archives/edgar/data/1515718/000151116415000305/vaporhubinternational.htm
[/url][tag]June 2, 2015, LD Conference Presentation[/tag]

If you scroll down to the financial "back of the envelope" projections included therein, you'll perhaps reach some of the conclusions which I did, namely:
1. They are talking about calendar years rather than fiscal years in that set of projections, as "2015" is showing a little over $8 million in sales rather than the $6 million they had guessed for Fiscal Year 2014/15 (or the $5.3 million they actually attained).

2. Even when granting it to be calendar years, they'll be fortunate to reach $6 million in sales for this current calendar year (and even if you annualize the excellent $1.7 million sales of Q4 2014/15, you get to "only" $6.8 million). That's a pretty long way from the $8 million in the company projections for 2015.

3. The final two years of the projection seem to be really "way over the top" and probably should be disregarded. A $17 million bottom line a couple of years out from now, driven by over $40 million in sales, is not going to happen.

4. Even so, I get the sense that the Company is not far from its breakeven level of sales. At that point, I think it would be relatively easy to turn the burden of the high-rate short-term debt into either long-term debt or into equity (without selling equity at a price that would be overly dilutive). In turn, the reduction of interest expense would give the company a better bottom line.

5. Once the company demonstrates its "sustainability," the stock price - even if there are more shares in the equation - might reasonably be expected to increase pretty sharply. ...as the stock price has been limited, in my opinion, by the chance that further financing will not be obtained.

6. All that having been written, I really believe that the company ought to come out with another set of projections, or at least publicly disavow these prior projections from this past June, as corporate credibility takes a hit when you're estimating a $17 million bottom line a couple of years out - and you know that there's now way in hell that it's going to happen.

Overall, despite some real red flags (which I think are factored into the current price of the stock), I think that the stock is attractive if you have the daring personality of the typical penny stock investor (and again for the record, I'm not in this stock, or in any other for that matter).