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Re: buythebuy post# 3165

Thursday, 01/28/2016 10:05:40 AM

Thursday, January 28, 2016 10:05:40 AM

Post# of 26233
While I am positive that there is some value here that can be unlocked it is important to keep in mind that a promotion in the sense that you are thinking will not work in this case, at least not yet. As others have pointed out the amount of shares that can be converted is too high that is why no one can pump this stock until the balance sheet is fixed.In other words, you cannot push the price up at this point with good news or promos.

However once that convertible debt is taken out the supply of stock at .0001 nearly goes away and such a promotion would rocket this stock. It could be someone senses this is close, or perhaps there is a plan in place.

The way companies shrink outstanding without reverse splits has been very creative in other stocks but it is premature to think that a paid promotion would do anything other than allow those convertible holders to balloon the o/s stock at this point.

The big point I try to make is a company with year over year growing sales for 3-4 years , selling 4.5 million perhaps in 2015 with the possibility of much higher sales should be worth a 3 million dollar balance sheet fix or a 10 million dollar equity deal. Ideally a debt free company with a credit line and some working capital would be best.

If this product works it could easily be added to the solarcity product line or picked up by another company especially since solar is not optimal alone in so many situations. Plus the footprint of the combined device is smaller.

In terms of some positives..

1- Import/export bank was re-funded by the US congress as part of the infrastructure bill that just passed. This bank guarantees the WSTI credit line and had been without funding for a while.

2- The global climate pact signed by almost 200 countries should boost demand for such devices in developing countries.

3- The US budget that passed ended the Sequester and restored 80 billion to the defense budget. The company produces , or was planning on starting to produce in Q4 2015 the mobile mill for emergency situations (see video on youtube), This is a product that many parties had been interested in in the homeland security/crisis management area.


Some negatives

1- Lower fuel prices makes cost comparisons difficult for solar/wind and payback periods for projects longer. However oil is up a bit in the last week and might be a bit firmer with the announcement of Russia looking to cut production as well as OPEC having a meeting.

2- The passage of time allows the o/s to balloon up. It would seem to me , as I have stated before, it would be best if something happens in the next few months before the o/s gets too high to fix. In my rough calculations each billion shares decreases the potential return from .0001 level about 25-30%.

As I have stated from the beginning this is a long shot hail mary play not suitable for big money only as a lottery ticket play with small money that is high risk capital.

It would be nice to see this turnaround though, as I feel it was victimized by outsiders in that pump and dump in which management sold no shares.

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