Good question about how the company is paying for this. In some ways we are thinking along the same lines as I was just thinking about that after waking up from a nap. Can't answer the paying for part, but why is the stock price where it is, here some thoughts I was having:
1. This is from the PR:
"Our products are hitting the retail shelves at the same time that our $10,000,000 in advertising is kicking in. We also just completed negotiations to buy the company that has been making our lubricants and chemicals. The acquisition increases our current profit margins, provides an additional $500,000.00 annual revenue stream, and also increases the profitability of our retail venture with RPS."
OK, so 10M in ads. with an INCREASE OF $500,000.00 in revs.
This is from Yahoo;
Profit Margin (ttm): N/A
Operating Margin (ttm): -575.67%
Management Effectiveness
Return on Assets (ttm): N/A
Return on Equity (ttm): N/A
Income Statement
Revenue (ttm): 62.28K
Revenue Per Share (ttm): 0
Qtrly Revenue Growth (yoy): 121.00%
Gross Profit (ttm): N/A
EBITDA (ttm): N/A
Net Income Avl to Common (ttm): -385.96K
Diluted EPS (ttm): -0.001
Qtrly Earnings Growth (yoy): N/A
Balance Sheet
Total Cash (mrq): 7.78K
Total Cash Per Share (mrq): 0
Total Debt (mrq): 402.88K
Total Debt/Equity (mrq): 1.403
Current Ratio (mrq): 0.246
Book Value Per Share (mrq): 0.001
I believe that this could be construed as a major change for the soundness for the company. We're talking a SIGNED CONTRACT with MAJOR OUTLETS that this company has never had before, ever. And they just announced Friday afternoon. Almost NO ONE knows about this yet. Forget Diesenol & Flex-Tex for the moment as all they do is make this a great story stock (& I love a good story stock) we are now talking REAL cash flow with (don't know the percentage yet)& good margins as they have cut out the middle man by making their own products. The ONLY reason I know about this stock is it was of the 15 or 20 that spammed the Yahoo GNBT board and I decided to check it out. Do you see where this is all over Yahoo? NO! This is a truly undiscovered company & now they are going to have REAL EARNINGS from a REAL CONTRACT.
I predict that by this time a month (maybe a week) from now this board will not be a so pleasant a place as it is now. Prepare to be invaded by the MO Mos!
Of course I may well be wrong. Nah...