livinginstyle excellent post
Nice and factual.
Posted by: livinginstyle
In reply to: FrankDrebin who wrote msg# 60930
Date:8/18/2007 4:10:47 PM
Post #of 60953
I thought the financials looked pretty good. We have a minimum of a 4 PE going forward . Profit was up from a little over $2000.00 last Q to over $111,000.00 this Q. We had a one time gain on the sale of Global of just shy of $139,000.00 that actually netted us a total profit of $250,000.00 for the Q. Expenses were down overall. Cash on hand increased $98,540.00 to just under a million. The financials consisted of old revenue streams. New revenue streams are slated to start coming on line next Q or two. Cash burn is low and profit increased, what's not to like?
This company has a lot of armature investors. Many are selling due to the price dropping which is what the pros want you to do. IMO, smart money is buying at these prices. They wait in the wings like a cat in the bushes waiting for his prey. The instant the armature places his/her shares on the market, they are gone. Fear and lack of trust is the driver here. The market is separating the future winners from the losers right now.
Some say the share structure will prevent a run. I have been griping about this share structure for a long time. My words were always countered with criticism. But, this last financial statement showed me something. If we can sport a 4 PE with 7.8 billion shares outstanding with old revenue streams only, look at what the future could bring. I expect the company to use all 11 billion shares outstanding. But, that may not hurt us at all. Just look at what $111K profit has done with 7.8 billion shares. You have to look at the potential going forward. China news is coming in a month or so. Forex will someday be a winner. Time is all we have to invest here going forward. But, if you have any extra money in your pocket, why not stand next to the professionals and get your share?
As far as future dilution is concerned, they will not dilute to cover daily expenses like other pinkies cause they don't need to. They have enough cash flow to cover expenses. Now, dilution for acquisition may be on the horizon. But, look at what they have done so far with their acquisitions. They acquired Global, stripped the company of what they needed, kept about 27% of the company and netted a $139K profit. They also loaned Global's management some money and secured assets for the transaction. They should have a future revenue stream in payments from Global.
Look at Check 21 acquisition. According to IR, a killer PR concerning a huge China deal is coming in a month or so. We could have something here folks. That acquisition could prove to be very big and cheap.
Look at the worth of all the shells they have acquired. No telling what they could lead to. There is money just lying there as far as I'm concerned.
My thoughts are this: If they dilute to add another division of some kind, they will probably end up stealing it like all the others. We really could have something here folks, my advice is to hold and watch it turn to solid gold.
