Remember, this is a small company, going into a new area of development. So don't be too hard on them...
After following them for a couple of months, I went from skeptic to neutral, to actually laying out money and buying shares. A few things that did that for me....
1) Accounts receivable are way overdue, and a joke to be frank. However, in one of the press releases this was addressed by the new VP of Sales. I am guessing the reason the old VP of Sales left on "mutual agreement" was over the issue of outstanding accounts receivable. Doesn't do anyone any good to sell things, without collecting the money. 9 million over 90 days on a company like EESO is half of last years sales.
April 1st release and I quote Mark Murphy "We will see to it that our accounts receivables are collected in a timely manner, while maintaining strong relationships with our strategic partners. "
2) The WowGreen thing is impressive. I received some information/samples from a buddy of mine, and it all looks good. Even tried some on my sailboat with good results... all though my wife says the dishwasher detergent is lousy. But still, the WowGreen relationship will make sales. Without a doubt.
3) I coincidentally bought some just before the buyout offer announcement, then I bought some more today after we filled the gap. Now, here is my thoughts. No CEO in his right mind, would announce a buyout offer like that, without serious substance that could stand up in court. Forget exchange rules, imagine a class action lawsuit for fraud... which will happen if J.H. is manipulating things here. So either he is crazy, or legit... I put my money on legit.
I also liked the fact that J.H. stated they expect a counter offer within 30 days.
Some things to remember on buyouts:
a) Non-Disclosure contracts
b) Financials will be reviewed, without a doubt. That is why you sign a non-disclosure.
c) Money down. J.H. said they had 1% down in Escrow. So that is a legal down payment intending completion purchase as detailed in the letter of intent. There should be over 1 million sitting with lawyers some where.
So seeing how this is my first post here, I thought I would throw out the three things that stand out to me. Remember folks, all of this takes time to put together. Companies don't just get bought out overnight, or even a few weeks... it takes T-I-M-E. Trade it, with risk being the stock at 0, or wherever your target is... but be aware it takes some time to get there.
Good Trades,
Yukoner
PS. Jim, if you are Canadian and know what a Iron Kondor on NT is, please pm me.
AI
