My 10Q take....
As I read through the 10Q... I didn't jump for joy. They are in default for about 3.5M in loans, they had zero sales, and now have no cash.
As investors, we need a sanity check. This is not even a penny stock right now, so if you are and have invested in this stock... You should know that this is a real risk. So what? Risk vs. reward. If you don't have the stomach for it... Get out buy Coke or Home Depot.
What I found interesting is that as I counted the pages... Gene has kept this company together from pages 18 to 36. Approximately, 18 pages of begging and borrowing from many entities just to keep it afloat. 18 pages of documentation. I have been around along time, and those that criticize Gene haven't been through the complete gutting of a company... when the CEO walks away with a Golden parachute. And he has worked for nothing.
So, I have identified the players that have a vested interest in GTHPs success. Faupel, Gene, Board of Directors, Shenghou, SMI, Auctus, Eagle, Adar, GHS, Power Up Lending, and GPB. We are within 9-12 months of China approval and we already have India approval. Do you really think those entities will let us go BK?
First of all, BK is not happening... because of the 10M insurance policy Gene took our with GHS. So those thinking BK are just idiots. Reverse split and dilution not only possible but likely.
My positives were that they only issued 12M shares to GHS. Thought it was much more. Read page 37 if you want a real feel. Auctus gave more money. Gene forgave salary for a 6% loan and 100K shares. What is 100K shares worth right now. $250. Faupel also forgave for more shares and loan at 6%. Are you kidding me? Most CEOs would rape you over the coals. Look at PAGE 37. Why would the forgo salary if they didn't believe they would recoup in the end?
What I believe is that money is like water... it finds the point of least resistance. This stock has enormous upside with limited resistance. Some are talking about forebearance... If it was going to happen it would have happened.
Investors will be here soon. This one is too easy with a huge amount of leg work already done. They are working with one Chinese company, they have two on the books. They are approved in India. I struggle with Turkey solely because of their economic climate.
GTHP looks like they have spent the last 6 months cleaning up dirty laundry. It is getting time. The fact that Gene has been silent is a good thing. He is trying hard not to rape us over the coals. He is trying hard not to use GHS credit line. He is trying to provide value for shareholders. My guess is our fate as shareholders will be determined by Thanksgiving. Ironically, Turkey day.
Dave
