If you know the company's history it might clarify things a bit...
Old CEO was taking this company down a path of leasing equipment and charging customers for what they produced. 5 years ago there were about 120m shares outstanding. Profitability seemed near and the stock price neared $1.00.
Shortly thereafter Lavance took over and took the company in a new direction of being the distributor of the product. This included buying back the leased equipment and putting the product through testing for additional EPA approvals.
We were all aware that this would take some time. Original thought was breakeven would occur about 9 months ago, but the oil downturn delayed this. Meanwhile, we have proven our product to be more effective than even we could have imagined and have built up our infrastructure for distribution within the oil and gas industry.
Inevitably the delays have cost us in the form of dilution, but it has also presented unique buying opportunities for a legitimate company with a legitimate product in a very rare range.
The IR has been rough for this company historically imo, but we have a solid contact in Yvonne Zappulla who is giving the shareholders what we have needed for a long time. She was actually brought in by an investor of the company because the investors have been unhappy with the IR contacts of the past (the company typically didn't employ a person dedicated for this role).
The company is truly very close to profits. They have never put out PRs pumping positive information unless it is all but a foregone conclusion.
I have purchased 2m shares, most in the last 3 months.
Even if their cash dries up the company will at least recoup the 25m of invested cash based on the infrastructure and EPA approvals. That puts us at a valuation around $.08.
There have been offers in the past and the company has turned them down. Since then our EPA approvals have grown and our infrastructure has increased. But worst case scenario is a large producer would scoop us up in a heart beat if we were in bad shape. The company has not sold because they are confident in profitability.
I see no way we lose here. Still have my valuation at $.30 by year end!
I would load up!
