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Ok I'll give it shot

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up-down   Sunday, 03/13/11 05:30:06 PM
Re: MrG post# 555
Post # of 597 
Ok I'll give it shot

Most pennies pop and subsequently downtrend for long periods of time. That happened the CSKH as well. Why does this happen - one reason, toxic floorless convertible dilution.

The CSKH story is that the toxic dilution that creamed the pps is exhausted, hence the uptrend now taking place. The company went public via a reverse merger in early 2008. The company was on a roll, doing large commercial solar installations. When the credit markets collapsed all financing for solar installations dried up with it.

The company saw pending installation contracts canceled and little to no work coming in. So they did a toxic convertible deal to raise enough cash to keep the company from throwing in the towel. In 2009 they only did $200,000 in revenues. Come 2010 all that has changed. They booked $5M in revenues in the first 3Q's. Company guidance is $15M in revenues for all of 2010 so we are expecting see ~$10M booked in 4Q, which will be reported on 3/31 in the 10K (17 days away)

So there you have it, a penny stock that does real business (not some cash burning start-up) that is seeing its revenue spigot opening up wide.

Another plus is that CSKH is a liquid stock, so a sizable position is possible


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