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Re: upshegrows post# 831

Thursday, 01/09/2014 4:40:41 PM

Thursday, January 09, 2014 4:40:41 PM

Post# of 932
USG: Why buy ASIUF stock?

If you believe that it is delusional to think ASIUF can ever be profitable (and you state years; is that 2 years, 10 years, 17 years?), why buy the stock? Don't you buy stock thinking (predicting even?) that it will go up in value? The only way ASIUF's share price goes up is with profitability.

As I said before, I believe profitability will be achieved in a couple years. I also think that they need to continue to expand with more units to get there as well. However, if they can show that one unit is profitable in terms of COGS, and not the general, administrative costs that would be shared by all units (as I stated before), they will have a strong business case for more loans, to develop more units. And may even get some outside investment firm's attentions.

And yes, no wants > 50% dilution, but it is necessary, and I think still allows for much room for the share price to grow. Many biotech stocks need to dilute during Phase 3 trials (if they do not have the capital or Big Pharma), and those with successful products, still see their shares jump, even after dilutions. Again, every case is different, and I still believe that ASIUF low share price of 0.05 is overly low, even for a volume of 150 Million Outstanding shares. I think the reward well outweighs the risk.

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