CERP<<<There are many things in play that can affect the pps over the next 24 months. Trying to accurately break it all down and predicting how it will play out requires a crystal ball I do not possess. However, here is my mere opinion on what is in play here:
1) I agree with Jaylin's assessment of a technical adjustment back to at least the artificially depleted share price of .05-.06 as being attainable on current market adjustment. It will remain to be seen if the market can adjust all the way back to .26 without a judgement being entered against Hanover and Magna in the current litigation. A large award in the litigation should move pps back towards those levels.
2) Any new substantial contract news will affect pps in a very positive way, multiple contract announcements should create the strong sustained run back to Nasdaq and dollars.
3) Most people don't realize the way in which H&M have played here, and the way venture capitalists play in the market in general. Imagine for a moment what your life could be like if you always could buy your millions of shares ahead of a promotion at a lesser price than what the rest of the market had to pay, and that you always knew ahead of time precisely when the promotion would begin, and that you had the ability to manipulate the ask and the experience to place bid walls ahead of the promotion that would rarely be dumped on by any other sellers to ensure your profitable selling...how long would it take you to become not a mere penny millionaire, but a penny billionaire?
That is in part the advantage of a venture capitalist over the rest of us who play in the marketplace. Most times they are the ones who hire the APS promoters who pump a stock for their dump. The penny stock market is truly their oyster. Yet if it should operate in good faith, for companies that are lacking in capital it is one way to bring their operation to profitability. It takes money to make money.
Now suppose that there is a way to create dependence on the venture capitalist, to bring the company back for more borrowed money that converts to below market priced shares? Suppose the VC leaves the operation of good faith and hires professional bashers short selling stock and using their cheap shares to deflate the fair market pps ahead of their conversion so they can acquire millions more shares than what they would have acquired in good faith? This is the allegation in the current litigation of CERP vs H&M. Very rarely does the little capital poor company have the wherewithal or the legal ease to sustain what CERP has endeavored. But CEO Scheer holds a doctors degree in law, and hired a very good law enterprise to represent the CERP claims. To minimize the potential outcome of this ongoing litigation, IMO, the professional bashers have stepped up their game here.
Quite possibly, the current pps movement is exposing this overextension. If the market becomes wise to the manipulation as alleged by CERP, pps should continue the strong march north. The current CERP chart is showing a strong bullish candle!!!
4) Dilution is a factor here. Tied in to number 3 above, the professional bashers will want to blame CERP for dilution. The likely reality is that dilution has been greatly amped up by H&M ambitions for more cheap shares as outlined in CERP's allegations against H&M. A great increase in market demand via contracts and revenue is likely to make moot the current level of dilution, though the return to Nasdaq may be slowed by its effects.
5) Good faith investing. I am not as deeply invested in CERP as many, my share count only in six figures for now though I have been wanting to add more here. I have chosen to make my investment in good faith, meaning that I realize I could lose some or all of my investment here. I have chosen to invest here because of the common good for us all that CERP products have to offer, and because they are a real business with real product. IMO, if more investors made a good faith stand with CERP, and refused to give to panic loss selling as promoted by bashers, the pps would see the desired long term trend that we all hope for. For me, I've developed a never surrender to loss mentality to investment that is contrary to what some advise...and I like it. I have seen profits roll into stocks that I would have given up hope for if I'd have given in to feelings inspired by the bashers or even "common sense" advisors. Investor sentiment is like a tide that you have to wait for. If you bought at a fair price and it is a real company, eventually the tide will come. What a company can do for a stock with production and revenue is move that tide to much higher levels. The Tsunami of orders predicted by CEO Scheer as he has championed the cause of CERP through international legislatures, IMO, will likely come over the course of spring and summer here. Steadfast growth in production causing the need for expansion is what I am looking and hoping for here. I'm not looking for the quick "pop" in pps as many here are, as I do think this company has some real longterm hold potential.
That said, it does have some short term hurdles to get to longterm goals. Among those are debt concerns, expansion costs with increased demand, and the ability to fully meet demand.
6) The litigation could be a great boost to CERP with a win. If CERP contentions are correct, the dollar amount by which CERP has been hurt is cumulative in nature, so keeping the dollar amount open vs specified has also been, IMO, a wise course of action by CERP. Some have thought a settlement might result now that H&M petition for dismissal was dismissed. My estimation is that though a settlement might have been in H&M best interest, that they have endeavored differently.
7) The sentiment of CEO Frederic Scheer himself cannot be overlooked. He has not sat idly by but has championed legislature that favors CERP products. He did not take the actions of H&M passively, but filed litigation. These are marks of a man yet fired by passion for his endeavor.
IMO, very few people can know the feelings of a man who endeavors achieving a productive business to benefit his fellow man. Many only see self benefit as his motive, and of course, there is that. I have endeavored some in business, and know others who have endeavored, seen success, and then lost their business to unforeseen circumstances. When the hopes of others have counted on them, the feelings were multiplied. They have described their feeling to me as being as deep as the loss of a spouse. Some have hidden in a bottle, and have little hope for recovery as all of their hope was in their business.
It is a bold endeavor to venture into business. Bolder when others are counting on you. And even bolder still to take a company public and have shareholders counting on you as well. In this instance, I appreciate the tenacity of Mr Scheer taking a pay cut, championing legislation, and taking on H&M. These are the marks of a man who won't quit on those who are counting on him. As long as he endeavors, then shareholders also stand to profit with him.
8) The current CERP chart in breakout mode will bring many penny players looking only at the chart and breakout potential. Only those who do due diligence here and understand the full dynamics of the company will stay for the long term play if they can stomach the risk. The smarter players will take profits and ride freebies, but may not remain long enough to see the full potential here. A sustained growth with little selling could see a much higher than predicted .014 next week and .14 end of Feb to the .22 to .26 range that CERP should be holding. But the pro bashers are definitely and defiantly working this stock over, IMO. Volume overcomes.
I hope this answers your question as to my mere opinion, Don. GLTY and all CERPians.
