THis bears reiterating...from a discussion b/w me and doodle, notice the date in question.
Posted by: sparco
In reply to: doodlemike who wrote msg# 600 Date:5/14/2005 7:01:44 PM
Post #of 916
Doodlemike, I'm am sorry but there seems to be a sense of naivete on your part concerning MSITF and penny stocks in general. First and foremost, pennystocks are meant to be traded, not invested especially for a pinksheet stock as I have learned the hard way. As you correctly stated, no one should be surprised when pennystocks dilute and hence the risk associated with holding long term and thus the strategy of trading pennies strictly on runs.
"The one thing that I find amazing is how often people who invest in pennyland-subpennyland stocks complain about dilution."
"Assuming that the current o/s count is 2.8B (though I believe it remains in the 2.2B range), this is hardly massive dilution on the scale that is more the norm in pennyland."
No need to assume, the o/s is 2.9 billion, it is true. I called the transfer agent myself and you are free to call them. It was Island Stock Transfer and I spoke to Kara(?) So therefore we can disregard your naive notion that the o/s is 2.2 billion. With that being said, you are quoted as saying 'that is hardly massive dilute on the scale that is more the norm in pennyland'. I do not know how long you've had MSITF, but they did have a reverse split a few years ago that you have to take into account on the order of 1:15. THerefore when you take that into account, the 2.9 billion o/s (i said 2.8 previously but rounding it is much much closer to 2.9 billion) is really 43,500,000,000 which is 43.5 billion o/s. HOWEVER, I must admit that I cannot remember the amount of the reverse split before that one, I know there was one more previous to the 1:15 reverse split. Being conservative, lets say it was 1:10. Then on a pre-reverse split basis, the shares outstanding is 435 billion o/s. Now whether it is 43.5 billion or 435 billion, there is no doubt whatsoever that this stock is proven to massively dilute on a scale that is much more the norm in pennyland. In addition, if you do not know, this company is legally authorized to issue UNLIMITED SHARES and in the past the previous transfer agents were gagged. Not a healthy way to run a business. Also the statement below is false as well because of the pre-reverse split history is not taken into account.
"Though 2B shares are a substantial amount and have obviously contributed to the pain investors, particularly longer holding investors, have been feeling lately, MSITF has begun to reap the benefits from those 2B shares. A little mathematical perspective is in order. At today's price, those 2B shares are worth $4.8 million (or if you desire to use 2.8B shares, $6.72 million). And yet, the return on the 2B share investment thus far has been $50+ million in expected revenues in the coming next few years, a good portion of which should flow to MSITF's bottom line."
I originally bought this stock after the $25 million dollar contract with Aladdin Pharmaceuticals back in 2000. And yet, the financials post that period did not record any revenues from this whatsoever. Therefore the recent contracts of late unfortunately have a strange ring to it and thus the adage "show me the money" in the audited financials. The 2nd year delay of the financials concern me more this year than last year and that is very troubling especially when Talbot told me himself that "the kits are selling like crazy" and this was a couple of years ago.
" These expected revenue numbers are too significant to overlook and at some point will propel MSITF's stock price higher."
Your statement above is true. I still have not overlooked the Aladdin Pharmaceuticals contract, however, the pps has gone the other way.
"My personal expectation is that Talbot will eventually commence a share buyback once the steady stream of revenues start to flow. "
If I may ask, did he presonally tell you that?
AI
