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Re: Decatsmeow post# 7081

Thursday, 01/26/2017 12:36:22 PM

Thursday, January 26, 2017 12:36:22 PM

Post# of 8579
Good morning, decatsmeow, and it's unfortunate that you've exhausted your posting limit for the day. I really didn't imagine that there'd be such a load of posts between my middle of the night foray into here and this moment, right after I've caught up with everything in between. Thanks for calmly and rationally presenting your point of view.

I think what's really going on here in the past whatever number of hours is the debate whether Kyle and friends are entering into this transaction (in whatever way the "asset acquisition" by PLY will finally be specified) from a position of strength or of weakness. I honestly don't know, but I'll line up some evidence on either side of the debate.

Why management is dealing from a position of strength:
1. a nicely profitable first fiscal quarter in which lots of debt was pared down.
2. the attraction of the Limitless product name.
3. experienced management, showing signs of leadership in the industry.
4. prospect of reduced regulations due to the new presidential administration.

Why management is dealing from a position of weakness:
1. The second fiscal quarter was "advertised" by the company in the 10K as being the low point seasonally during the year.
2. The significant minority position by TCA/Fife may be pulling some chains on management.
3. The stock price hasn't done anything from a longer term perspective. Sure, going from .3 cents a share to 2 cents over recent months is a big climb, but then going from around $1.90 per share at the intraday peak in Spring 2014 to 2 cents or so today is even a bigger decline.
4. The FDA regulations, and the upcoming costs of compliance, are in place until the uncertain moment if/when they'll not be in place.

There are lots more points that could be offered as matters of strength or of weakness in regard to how hard Kyle and family can negotiate on their behalf and on the behalf or the rest of the shareholder community. Overall, if you think Kyle is negotiating from strength, you couldn't begin to imagine why he'd take less than (pick a number) 7 cents per share as the value of the assets they're selling. Or, if you think Kyle is negotiating from weakness, you'd easily picture that he'd take the current price of the stock and be grateful, and be happy to have a job post-transaction.

It sure would have been helpful for the company to have released its first quarter sales number when it became available, and that's another element that bolsters the annoyance of some of the gang here who have been really unhappy with the "openness" of the company for a long time.

Anyway, thanks for interacting with me. We'll all have a better sense of "which end is up" right around three weeks from now, and patience is always a real challenge.