Tuesday, March 23, 2010 1:07:17 PM
Thanks VZ.. it's an issue I take seriously..
There ARE small entrepreneurial companies that can't afford to do an IPO, but need access to capital. That's especially the case in this economic climate where banks aren't lending and they're extorted for huge percentages of stock to undertake an IPO.
I know this firsthand because a long-term family friend has a great product that took years to develop and now ready for commercial sales (if they can raise the capital). They looked at a RV and only by the grace of god did I find out in time that I was able to perform some basic DD and retrieve them from the hands of some financial sharks that would have destroyed the company and it's stock.
I would love to find a clean corporate shell with no previous liabilities, and relatively low O/S shares that they could fold their company into. I believe it would merit the kind of confidence that many of these companies are expecting from Monk's group.
So if folks are going to risk their capital on admittedly risky companies with stock trading on the pink sheets, it's incumbent to the maintain diligence, and requirement management to not subvert/undermine shareholder value.
We're in a networked world and fraudulent companies will have a hard time avoiding being uncovered if they fail to present credible business operations.
These are the kinds of companies I hope Monk focuses on in the future. But for the time being I'm trying to get comfortable with EIGH, despite the large quantity of shares O/S.
But that doesn't mean the stock isn't worth 2 to 3 times the current price we're seeing.
JMHO..
Hawk
There ARE small entrepreneurial companies that can't afford to do an IPO, but need access to capital. That's especially the case in this economic climate where banks aren't lending and they're extorted for huge percentages of stock to undertake an IPO.
I know this firsthand because a long-term family friend has a great product that took years to develop and now ready for commercial sales (if they can raise the capital). They looked at a RV and only by the grace of god did I find out in time that I was able to perform some basic DD and retrieve them from the hands of some financial sharks that would have destroyed the company and it's stock.
I would love to find a clean corporate shell with no previous liabilities, and relatively low O/S shares that they could fold their company into. I believe it would merit the kind of confidence that many of these companies are expecting from Monk's group.
So if folks are going to risk their capital on admittedly risky companies with stock trading on the pink sheets, it's incumbent to the maintain diligence, and requirement management to not subvert/undermine shareholder value.
We're in a networked world and fraudulent companies will have a hard time avoiding being uncovered if they fail to present credible business operations.
These are the kinds of companies I hope Monk focuses on in the future. But for the time being I'm trying to get comfortable with EIGH, despite the large quantity of shares O/S.
But that doesn't mean the stock isn't worth 2 to 3 times the current price we're seeing.
JMHO..
Hawk
