So, is this for-real?
Two possibilities:
a) This was the company cleaning up shares for the Q before turning on the taps to max out A/S...
b) The share reductions are finally getting traction in the form of pulling in major new money.
Who knows what it is? I don't. But here is why I did not sell a single share:
IF the company reduces OS to 200mm (their oft-stated goal), then with $100mm in revs we have a price:sales ratio of 1 at 50 cents. If they do $20mm in earnings off that, we'd have a P/E of 10 at $1.00.
Can they do $100mm? Heck, they did $13mm in orders in one month without Spongebob or CVS or PETCO or Walmart or Target or suntan or Lysol or or or or. Of course they can do $100. If they get into 100,000 retail outlets and clear just $1 per day from each, we have $36.5mm in earnings.
The upside here is just INSANE.
So, this either converges on zero with endless dilution or it goes to the moon. Even if it were only a 50:50 shot either way, I'm taking those odds of getting a 20-bagger or 50-bagger from here.
And this is all without assuming that there is a single naked short...
IF management or management+Furth own the entire float, then the shorts will eventually have to knock on their doors to ask what they have to pay. I have no idea what Furth is thinking, but I do know that he has consistently scoffed at me as a small-time player when I ask whether we could ever get $1/share.
Even so, I hear folks tonight asking whether they'll have another good entry point! LOL!!!
My entry point (average) is 2.4 cents, and I'm feeling very good. Sure, I wish I bought more shares by getting a better price. But if this hits, it is NOT a question of where you bought. It is only a question of HOW MANY DO YOU HAVE.
I have 4.75mm. Got yours?
Wadi Rum
AI
