Cash and other board-colleagues,
I'm really happy for the gang here, as the 10Q has provided a bunch of positive fundamentals that I'm pretty sure have not been priced into the stock yet.
1. The bottom line, not just operating income, has turned positive. No longer does Paul Knopick need to restrain himself to writing about how sales have performed or how gross margin has improved - he can write about an actually profitable company.
2. Iliad (Fife) debt is way down, so the dilution is now mostly a matter of history, I would believe. Meanwhile, the TCA debt is not that dilutive in nature, as the 10Q states that the conversion rate is just a 15% discount.
3. The family has loaned the company some more money. Since they're putting money in rather than taking it out or letting additional toxic debt come into the picture, they're bullish on the future. Incidentally, it's a positive sign that accounts payable declined a lot in Q1, as the end of fiscal year number was rather high when viewed in relation to cost of goods sold.
4. One of our posters is still writing about how September sales must have tanked since July and August sales both hit the million dollar mark. The fact is that June and July sales hit the million dollar mark, and the it's only July that fits into Q1 of this new fiscal year. So September sales did not necessarily tank, as contrasted to both August and September moderating from the high levels of June and July.
5. I can't think of a good reason why the company shouldn't be able to issue more stock (not at bargain-basement prices) or take on non-toxic long-term debt to finance the work that would need to be done to be compliant with FDA regulations. Even better, I see those regulations disappearing under the incoming presidential administration.
You all know that I don't go "coo-coo for cocoa puffs" in one direction or the other when I do my analytical "stuff" on this company, especially since I'm not at all a participant in the penny stock world. But I do think that the lid is finally going to blow on this stock, beginning on Tuesday morning, even if Mr. Fife will be selling into the upticks.
Have a good evening, one and all!
