I agree. A partnership or a buyout is the golden ticket. Otherwise this could take a while to grow. But regardless of all that, with its current Balance Sheet and its internal IP (not on the Balance Sheet) this company is worth far more than the market cap it is trading at.
There is only about 7.7M in the O/S right now. So that is a market cap of about $10.8M based on a PPS of $1.40 — take a look at their Balance Sheet and see if that makes any sense at all. The reason it drives down so low is because the float is so small.
There are about 3.3M warrants to purchase stock at strike prices in the range of $4 and $5 from last summer’s issuance. Those are all still outstanding. That is about half the O/S worth of warrants that are not just out of the money, they are FAR out of the money. Some of which are held by insiders. Now whether you buy in to incentive making a difference, most can at least agree that insiders and institutions buying the stock + warrants like they did last summer is a pretty good barometer for what this is worth or at least will be worth.
I think those with an average of $5 or more need to get realistic with themselves on whether this will ever be back in the green for them, or at least recognize that it could take so long that it would be easier to recuperate the money elsewhere. But in terms of averaging down or entering at this level, my personal opinion is this is trading very cheaply right now. With that said, I wish the best to the longs and particularly those who were in pre-RS, but just sharing my honest opinion.
