Hemi Energy Group Inc. (fka HMGP)

[jack804]

The question of large, successful companies and pink sheet companies being "debt free" is interesting, and it is worth discussing. Most successful companies, large and small, who have been operating successfully for many years are technically not debt free. They often borrow money regularly, to meet payroll, and for any number of other special, one-time projects. One reason they borrow money, and assume debt, is because they can. Lending institutions lend them money because they have a reasonable expectation that the company will pay off the debt. In a sense, the company has established a "line of credit" over the years, based on their credit history and their continuing operation.
A pink sheet company is a different story. A pink sheet company has great difficulty getting debt financing - very few institutions will loan them money. So they opt for equity financing (stock sales)because they have little choice. Therefore, some pink sheet companies are technically debt free, but that alone does not say that the company is doing well. But taking that further, if the company is "debt free", has a positive cash flow, and there are any number of other positive factors that play into the company's operation, then we may have a pink sheet company with true potential. The difficulty is in evaluating all these other "positive factors". That's what we're faced with with Hemi.
I know I'm not telling many of you something you don't already know, but it makes for an interesting discussion.