Some interesting posts here. I tried to read them all to catch up.
obviously there are two kinds of people kicking around. Those that invested a big sum of money back when the stock price was much higher and who bought the hype, the rosey projections of 10s of millions in revenue etc. I can definitely see why these people are livid and feel like the whole thing is a scam. IT totally unraveled in a short period of time due to hot money in the stock which then sold short and the slow speed at which things got moving.
However there are other people that came in late like me and the price was no bid/ .0001 ask. Now you are looking at a company that is trading for a market cap of around 400,000. not 160 million. It is loaded with convertible debt but has grown sales amazingly over the last few years. I posted it before but its something like 800k to 1.7 million to 2.9 million for 9 months (probably over 4-4.5 million for the year. It has two plants, is selling these things everywhere and signing up distributors.
The thing is , is something once valued at 160 million worth turning around to potential investors. It might be , it might not be, but the valuation even given the dilution is really low. So its a binary play, they find a way out or they dont. Just suitable for a small amount of money in the hopes of many multiples if it works out and minimal loss if it doesnt .
Their debt problem is about 10 million. That is not huge money these days. The convertible part of that is maybe 3 million. The credit line would have to be renewed and the Indian loan worked out. But considering the India operation sales of just 40% non controlling interest was worth over 2 million before it even launched I have to imagine there are ways out of this.
I do not think it is a scam at all. The company was fully reporting until recently. Unlike others, I give Bates credit for surviving instead of closing in which case there would be zero chance. If this can be worked out prior promoted stocks run hard. we have had volume in this thing when there is no reason to have volume. If they get those converts out and money in this thing can easily be a 50-100 bagger.
a 100 bagger from here is a valuation of 40 million, roughly 1/4 of its high valuation before it even had meaningful sales but in order for that to happen it would have to
1- Get rid of toxic debt
2- work out Indiana loan
3- renew credit line or have access to some capital.
Money needed low end 3-5 million high end debt free company 10 million or so.
not a lot of money these days
