Here is my take on the situation:
1. We are shareholders of a company that is doing its darndest to make it happen. While we are making progress, there is a long tough road ahead.
2. The reason the price of the stock is low is mostly due to the fact that the company was/is(?) pumping shares into the market. (Per Alj14, the float has increased by 60-80 million in the last 6 months; Alj14)
3. The company is having a tough time cracking the market. Otherwise, we would see many more releases containing the program. Please note that the most recent jump from 154 to 156 was partly due to the addition of "velvet revolver bonus material"(I am advised by the company that the list is not all inclusive and that some customers do thier own support. If we dont do the support, the CD would not be included on the list) As such I believe that despite the paranthetical, we are not protecting that many new CDs.
4. There are no projections out simply because the numbers are unfavorable. On August 18, 2004 the company put out a PR stating that 5mil CDs were protected. Almost 3 months later and we have added only 1 million?!? (Dont believe that the lag in time between placing of ad and printing is an issue. It would have been simple to change the "six million" figure in the ad on short notice.
5. I can only assume that the company is spending more than it is making since 6 million X $.05 is 300k. I was under the impression that our burn rate was over 100k per month. By the way this would account for the sale of stock by the company over the last few months, and frankly would support the notion that additional stock is being sold.
6. The reason that most of us are here is that should the company plan work ie. our product gets used on a majority of the CDs coming out, the company would have one heck of an income stream and the market would support a much higher stock price. Will this happen? I hope so. Will I be here if it does? Yes.
8. The fact that the company paid dividends is heartning. I am sure that it cost a pretty penny to go through the exercise.
9. For those of you conspiracy theorists out there, dont forget that Peter said there is a plan to get shorty. Maybe the plan was to release little or no information for some time, then run an add that said only 6 million CDs protected in order to lul the shorts into thinking that they could milk this one for a little longer, only then to put out real numbers showing tremendous revenue catching all shorters off guard!!! (I dont subscribe to this theorty... see 1-8)
10. I feel that the best thing to do is wait and see where this one takes us.
Joe.
AI
