Good timing to answer Feds question...
What happened to the market cap, and when will the share price go up??
(I'm guessing the other investor was probably Proxy)...
ITRO is currently FAIRLY valued at approx 4 Mil market Cap. Look at their sales numbers to understand why this is so.
ITRO's market cap is reflected by their actual sales numbers. However ITRO sales are growing consistently and at high percentage. It's not reasonable to expect a doubling in sales every quarter or year after year; however the trend is obviously up.
With Silver 10x/100x underway it is obvious the increase in revenues will be sustainable and likely have a parabolic increase at some point. In any business this increase does not happen the day they launch a new project. It won't be apparent for at least 2 QTRS after the full implementation of Phase II silver.
When will ITRO share price finally run to higher limits? The answer is simple. When ITRO sales rise the market cap will follow.
What the share price is NOT dependent on is: Press releases, Whitney's performance on MoneyTV and his ability to give a compelling speach at investors confferences. Sure all those things may help edge things along; But they are not the make or break things.
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Why does ITRO no longer have an 85 Million dollar market cap? It's because there sales are no where near that. ITRO suffered the same fate as many companies that are R&D and take many years to get to market. There are many examples of this with pharmaceuticals and one example that comes to mind in a different industry is Home Grocer.
Home Grocer was a on-line grocery store and delivery service. Personally I think it was an AWESOME idea and I think it could have survived if it didn't suffer from bad investors. What is a bad investor? It's an investor that puts in a bunch of money and expects a return on their money in 6 months for an endeavorer that is obviously going to take longer then that. Home Grocer had to buy a fleet of trucks, a whole delivery chain, warehouse all the food, pay for large employee base.
Home Grocer eventually got bought out by Webvan and eventually went BK because their growth plans were so dependent on equity investors.
So what are the lessons here.
Well 1st, is philosophically if we don't have at least some bad investors who are impateint and want to throw money at the wind and expect immediate results; alot of IPO's would probably fail to raise enough money to get the businesses off the ground
Second, if there are too many bad inpatient investors, it can sink a company. Same if the Company really does take significantly longer then expected to get to market; then even good investors will flee.
Bottom line though is that while ITRO is still trying to get ahead of the cash-flow curve, they seem to be persistent and able to stay operational. Their projects are moving forward and their cash flow is expected to increase. Once that happens more growth will follow.
ITRO still has a large potential to return to a high market cap stock. But now it has to prove it with sales. Personally I think it's a rare opportunity to buy a stock close to fair market value Instead of paying 60x PE for a stock that's overvalued and full of nonsensical investors.
