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Re: ClayTrader post# 96922

Monday, 10/22/2007 12:19:43 PM

Monday, October 22, 2007 12:19:43 PM

Post# of 162848
Ajcmstocks,
I see everyone is harping about the emails that were posted about no R/S any time soon and that financials would accompany the acquisition.
Funny how they don't mention a few things.
1.Andrew DID NOT SIGN THE EMAIL. It is from an unnamed person. That means that ANYONE could have had access to send that email, including a janitor, and I'm speaking as they would if they were sued. How can any of us prove, beyond a reasonable doubt, that it was Andrew himself who typed and sent those emails? We can't. It's like if a gun is found with no fingerprints and you book the one sister, and the other sister says she did it, and when you have the dismissal on that basis, the next trial it's in reverse.
2.The wording in the emails is very carefully done, forward-looking, as a good CYA in case things don't pan. Who says Andrew's definition of soon isn't 1 year? And Hunsaker's version of soon is 1 week? You don't know. And nobody's willing to sign off on it. Kind of like U__G when the PRs all said "Management" for the longest time.
3.A 590K revenue company isn't a 590K PROFIT company. They have to pay 8 employees. That's a start. And I know that those in this industry are paid pretty well. But let's assume they get 50K each, that's 400K. Now, we need to know what the cost of sales is. Then the advertising. See where I'm going? They could be losing over a million a year easy.
4.The "acquisition" is in the LOI stage. Anyone who follows pinks knows that LOIs are a great way to prop a shareprice temporarily. Later they can say the deal went dead.
5.Just how much will they pay for a company with 590K in revenues? Probably LOTS MORE THAN THAT. But even if it's 2 million, at the current prices that would be over 200 million shares, since we know they won't pay market for the shares.
No matter how you slice this, it isn't pretty.
They will dilute this heavily.
And then R/S.
And then pay Hunsaker and Peacock after the price dies down a little more.
IMO/FWIW

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