Replies to post #42903 on PPJ Healthcare Enterprises Inc (PPJE)

[Ed the Trader]

"So, although I see that an A/S of 6 billion shares is pretty large, what else would you suggest that Chandana Basu do to recover from the losses that have led to the lawsuit?" --- Ed

"Well, she could have concentrated on her business, rather than on constant involvement in multiple lawsuits over the past years. She could have cut back on her lavish self-compensation." ---Janice

Look, you will get no argument from me that IN THE PAST, Basu could have done many things differently that MIGHT have resulted in a different outcome than where the business is today.

In spite of the information in the filings, I am personally not sure that Basu ever actually got to collect the level of compensation that the documentation stated she was entitled to collect. If she did so, I doubt it was for very long because I don't see where the business revenue would have supported it for very long, and we have looked at her house and it is not that lavish. So, if she really has gotten the stated level of compensation for very long, where is the money? Seems stupid that she would have just left a big pile of cash in her bank account when, if the money existed, she could have reinvested it back into her business to restore it to profitability.

I would also add that she could have been more diligent during the years of Grewal's presence to check up on why there seemed to be so many problems getting the right payments to him. No one loses that many checks in the mail!

Finally, she should have not only been more engaged with her accountant to know what is going on, but she should have periodically hired various independent accountants to look over the shoulder of her normal accountant to obtain a second opinion on the finances of her corporation.

However, ALL of those topics are now in the past, and none of them are of any use now to provide funding to reboot the company. Mistakes were obviously made; no company ends up in the condition of PPJ if mistakes were not made.

My point is that as much as no one likes dilution of share value, unless a corporate officer has a rich uncle willing to loan the necessary cash, or a corporate officer is the favorite grandchild of a rich grandmother on her death bed, no one is likely coming to the rescue with a solution that does not involve issuance of new stock.

So, when investing (or trading) in a business in this condition, there really are only two choices with regard to potential profit to be made from purchase of the company stock:

1) Buy the stock hoping that enough people will believe the fluff in the PRs about a business with no revenue such that the hype will drive up the PPS so that one can sell for a profit,

2) Buy the stock knowing that additional stock will be required to pay for what one hopes will be actual attempts to grow the business so that the future PRs can have some non-fluffy news that would drive up the PPS so that one can sell for a profit.

B.S. or dilution... if you buy OTC Pinks, choose one or the other... or if you are real unlucky, both.