Cetek's price 10. Bid/Ask 9@11 and low volume. The tone of the general market is flat,unemployment is disappointing, trade deficit exists, surging oil prices at $54 a barrel, copper at an all time low, weakness in the producers of metals. Optimism is withering. China is lessening its demand for copper, steel, aluminum. Hence a sell-off in commodities markets, and it spreads contagiously to the Dow and to the broader market.
CETEK: The question of how soon do you want to get off the pinx and go to the OTC and Nasdaq. It is a question of the ability to raise the money to do it. Cetek does not have the money to advance to the next level, an OTC listing. Stringent requirements consists of an SEC audit. Certified auditors cause a high expense. Auditors nowadays say "no more enron and no more deceit" The huge cost comes also with legal exposure. Hiring proper auditing firms.
This is not a big priority with the CEO, Fayiz Hilal, a brilliant scientist. Maybe by spring, perhaps between Jan and June 2005 the company can get off the pinx. There are attorney's fees, a review of as many as 500 pages of documents.
A form 10 goes to the SEC which involves much time, work and expense.
A question arises about price per share PPS. Until there is bona fide official positive news..and only then can the stock rally. Currently there is no news. The SHM was a form Sept 8th in Lost Wages where 35 shareholders were permitted to confront management. It was indeed a good session. Regarding PPS, there is no news from the company.
Substrates: The company indeed has a good market for substrates. They have almost a monopoly. Their substrates are in demand.
PPS involves what the market makers MM's are doing. They are the ones who monitor the demand. There has been inconsistent demand. Hence MMs bid downward. MMs are NOT a friend of the Company. They are wholesale traders. They are in it to make money. That includes short selling tactics. The public's buying CTKH shares has been spotty at best. When MMs cause shorts the price goes down quickly. Especially when a lack of public reports or news happens.
Then: there tends to be general boredom. Shareholders who formerly were anxious now have a bored attitude, tending to sell, to try something else. People have different time lines, different levels of patience. And the result is a low PPS.
The CEO is a strong-willed individual and is not easily influenced by others. He stays on the path of his beliefs. He does what he wants, almost dictatorily and PPS is not a priority with him. With him, his priority is building a future for high grade ceramics. The company eventually WILL do well. So far any public reports and press release information Cetek has gotten has not been a lot of help.
Negotiations are still underway as to the merger / acquisition, which till now has been a rumor. It is close to a wrap up; It has not yet happened. The CEO is a tough and frugal negotiator. There is an acquisition: near term.
The company is healthy financially; there is a large amount of cash in the bank.
Who am I? I am an investor. I am a musician, a piano player, and I have a dixieland band which plays Fridays in Signal Hill, the Long Beach Ca area. I'm retired and a shareholder of CTKH: a few million, just like the rest of you. I am not a MM. Only a wannabee, hoping to at least break even, if not make a few dollars.
Good luck to us all.
Jerry R. jerryrth@sbcglobal.net
AI
