DNAprint Genomics (DNAG)

[DougS.]

I agree with the facts but not the conclusion. I think you overestimate the options available to this company.

If you made the leap of faith that all the promises about their technology were true, there is still no way - none whatsoever - that they would qualify for a decent interest loan. This is a company whose value is predicated on intellectual property.

When you are a publicly traded penny stock, you are valued not by your accomplishments but your share price (unless your are fortunate enough to have assets, right?). How can one justify an $8MM interest loan for this company if it is valued at $30MM? If the company has real value then you wouldn't. You would just buy 25% of the company. A convertible is just about the only realistic option for an assetless penny stock.

IMO, there is one mistake that the company has made that has cost they and their shareholders: They grossly overestimated the amount of dilution that the otcbb could bear. The otcbb is a closed pool. It consists of the same traders and investors going over the same small number of stocks over and over. There is very little new money. I think they understand that now, but they didn't when they implemented the original convertible with JC.