Greetings Dew. I appreciate your kind words. Like most of us I have been anticipating the close of the BIO Cells deal. Now that it is several days closed and the market has had time to react, it seems we can make a preliminary assesment as to its importance to our bottom line.
I was surprised at the size of the deal. I was mistakenly under the impression the ownership stake was going to be a higher percentage than it was. The revenue projection IMO is disappointing 150k a year. Not withstanding the focus towards the future, the Biocells deal adds little to the bottom line but adds tremendous cost realative to CBAI bottom line. I do support the deal and believe long term it is a wise use of dilution.
In this regard, IMO dilution is the only way to look at this stock.
This has been upfront and the reasons for doing it have been clear from CEO then until now -culminating on where we are today- The final stages of dilution.
Prior to dilution CEO (correction readily accepted) said, Look- I beleive this industry is about to explode, I hsave to get out of this toxic debt in order to have a chance to capture the market, if investors allow me to dilute, the reward can be several fold.
There was no promise of reward, just a chance. Anyone on the board that thinks they have a right to a reward is confused.
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In the same regard its the investors right to question the direction toward their chance of reward. As its is the inverstor's(as which I) money.
I sense even the "longs' concern about the pps. Obviously Pitt/CBW are under cardic arrest, or manic depressive glee depending on how one chooses to interpret their concerns.
It s seems there is a danger developing for CBAI that IMO should be of top concern.
If the pps falls below the pre-dilution pps it will on the surface suggest dilution wasn't worth the cost of dilution. This is a bad signal coming into the 4th quarter, as the decision for tax right offs comes into play.
If investors, even "longs" look at the situation and decide the stock is so depresed that a 2010 right off would not compromise their ability to repurchase same at a k or 2 slightly higher prices, it would be worth the right off in 10'.
If this occurs IMO it will plunge the stock near sub-penny. Destroying any value of dilution. The amount of shares to raise working capital would be ridiculous, the company would implode.
IMO it is a real danger.
I wont sell until last week November, if I sell. Alot will depend on what my 3 month forcast is at that time.
If its at this level or to the 5's come then , then definately will sell. There would be no doubt I could buy back at relatively the same price and throw the tax earnings into it also within the wash window.
At this point, IMO- no aquisition will dent the pps. There is nothing that lucrative out there to move it.
One of two things will move the pps. A share structure correction (buyback,merger,r/s etc), or a Major contract, long term and in the 5 + millons.
Very soon there will necessarily be an evaluation on the cost of dilution. The consensus IMO will determine the fate of CBAI.
AIMHO GLTY
AI
