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Re: hedge_fun post# 26763

Thursday, 03/13/2014 10:57:47 AM

Thursday, March 13, 2014 10:57:47 AM

Post# of 31572
SmallCaps, one of the things I admire about you is your extensive due diligence. Your points of view are always backed up by facts. That is why I believe you in regards to the issues and risks associated with the license and exclusivity.

Having said this, there are many product categories where people are selling what are primarily commodities with no intellectual property behind them. However, some companies are successful in those categories because they build up their brand names and their reputations for reliability and expertise. I believe VSPC is trying to do this. If you do a search for "giant king grass" you will find many search results for VSPC and almost none for any other company. This makes VSPC look like the expert and go to company for Giant King Grass. GO to companies can command a premium. I believe the next 1-2 years will tell the story of whether their current business model works or does not. I am a little more optimistic than I was a year ago, but given their track record and the shoddy way they have treated shareholders in the past, I am by no means certain they are for real and will be successful. I am certainly not in the camp of those people who believe that the company will succeed because Dr. S has put his own money into it or those that believe that Chang will not take over the coma over the company if it does not meet its contractual requirements. He could decide that why only take 8% of the revenues when he can get all of them. So there are real risks as you have stated, but I also believe there are real possibilities for success. We shall see.

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