Good Morning,
EXPH held it's shareholders meeting yesterday (11/02) and as the substance started to leak out and the "Message to Shareholders" a major selloff occurred and not to my surprise.
Currently the O/S is of today is 989,392,218
This part probably lost many holders expecting a revision as a negative.
"Management is forecasting $9,000,000 to $11,000,000 in annual sales for 2010 down from previous plus. We are revising this based on the best information possible from our retail partners and reports regarding the lagging retail sector. The economy continues to struggle and we believe that any broad based U.S. economic recovery may be delayed into 3rd or even 4th quarter 2010. Management also believes pent up demand exists, and will benefit the company in terms of purchase orders with values exceeding $1,000,000, in late 2009 or early 2010."
Yesterday was very unfortunate as many sellers were caught up in the emotion and sold with their feet..Also, yesterday's selloff was capitulation as folks lost confidence in JD and EXPH...
As well, many do not like the creation of newly formed private company ETC..Now I can understand why many don't like this part, as their shares will not be tradable and is dependant on the success and this will come in a year or 2 after the creation...I could care less about this and in my opinion is just a bonus without near-term benefits, if at all..
My only concern is EXPH, as I have stated from my previous post, this issue is Fair Value .01..
EXPH is a nonreporting Pinksheet company with almost 1 b shares outstanding.. The current MC with .0044 is $4,400,000, half of what JD announced as a forecasted above..
This makes the current .0044 which is the bottom and way oversold, brought on by fear and anxiety and the usual dribble by message board posters that only see a week or 2 for for taking profits..
I can assure many shareholders that selling yesterday into this anxiety only will have you kicking yourself next week and going into January..
This is a good company with much potential, but it has it's drawbacks..First, it is a pinksheet where manipulation and in this unregulated venue, makes it extremely difficult to stay abreast what really is happening.
I read many of the disingenuous comments about JD and the company and some of the comments were quite rude..Sure, I can understand losing thousands of dollars doesn't come with any comfort, but what went on yesterday, was totally based on fear and thus the selloff that will only have folks blaming the company no matter what.
What we have with respect to EXPH is 2 separate entities, but should be run as one...As a local company in small town USA attracting Fortune 500 companies as clients, is a big deal during these turbulent times and keeps employees employed...Obviously the local economy likes this and has the financing in place through two banking Institutions...This in itself is unprecedented for a pinksheet company that has a financing package in place without resorting to selling shares like many pinksheet companies do to run their business.
The other separate entity is the shareholders side and because this is a pinksheet company without having to produce timely and detailed statements gives the impression that EXPH is just another company taking shareholders for a ride..
As shareholders, we may not always get the information we desire, but I can assure you that the 2 financial Institutions know every facet of this company and they believe in the company as a viable business that has enormous potential going forward...We as shareholders need to keep focused on only 2 areas and that is Share Structure and Revenue..JD said yesterday a revision and I don't have a problem with this, revisions happen all the time, but the current revision of $9,000,000 to $11,000,000 from the estimates of $17,000,000 still shows that we are Undervalued..
So we are here at .0045 and much dissent with rhetoric on message boards in anger that caused many folks to sell based on fear without real cause...
I have held this issue for quite sometime and believe in the business model and JD running the company...With this emotional selloff yesterday, only allowed many of us in averaging down and what I did today, is continue to buy, as I feel going into 1st quarter 2010 will get us back to .01 or close to it...
JD does need to uplist so this company can run as one entity with financial analysis based on performance through EPS, P/E ratio and other tools to really make an informed discussion and until this happens, there is only one measure we as shareholders can rely on and that is MC...
Current MC is $4,500,000 well undervalued.
I recommend this a buy under .005..
Have a good day
Varok
