Replies to post #175 on Learn to Trade

[DonLeopoldo]

The numbers they show for the warrants are pre-split. They don't say what happens with the warrants post-split.

The antidilution thing, as I see it, means that if the O/S increases, they get more warrants at a lower price.

Right now, the warrants would be somewhere at $0.04 to $0.05 and there would be 115 million warrants or so.

I found it curious that there is a company that suddenly got to own that amount of shares very recently. Do they plan on selling those shares while they exercise the warrants ? ...

... if that were the case, then we should expect a run to above $0.05 pre-split. Major news would be needed for that type of run, to get the Market Value to where it was 18 months ago, at $35,000,000.


Right now, what we must see, is a hold of the 0.0008 and a break of the $0.0013-0.0015 resistance level, and then we'll see what happens next.

Volume has shrinked a lot, and there is a big crowd of MM's at 0.0009x0.0010. Good or Bad news will be needed to break this narrow trading level, one way or the other, imho.
With the pending R/S, and with the Shareholder Meeting plus the 10Q coming shortly, we will soon get something (hope something good, LOL).

With the O/S=A/S, not even the Warrants can be exercised, and there are still $1.5 million in CD's.

imho, the company needs to get rid of the CD's and have the Warrants exercised. I don't know if this R/S will not affect the warrants, in which case, there will be an O/S of 7 million shares at $0.10 and 12 to 15 million warrants at $0.35 average (Class A & B + Finder), after the Reverse Split.

In this scenario, it would suffice to get up to the recent GAP, and the Warrants will be at a profit if exercised. It wouldn't be a huge multibagger, but I'd take it, LOL!

It would post-split, like if we now went to that 0.0035-0.0045 GAP, and maybe to the recent $0.0070 highs, or the MA(200).

The Warrant Holders would get a profit, the company would get $5,000,000 Cash, and the CD's could be cancelled with a small part of that cash, thus leaving $3.5 million cash still.

Perfect scenario and a Market Value $2.5 to $5 million between $0.0035 and $0.0070 (before the Warrant Conversions); and $7.5 to $10 million Market Value (after the Warrant Conversions).



We'll see what happens.

[DonLeopoldo]

This CBPC chart would represent that $2,500,000 Market Value situation, at the $0.0036 GAP.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=30863888

That company holding a bit above 112 million shares (Monarch Capital Fund Ltd.), could sell the shares above $0.0035 and exercise the warrants with the proceeds.

Of course, news will be needed, but with the A/S maxxed out, CBPC could go up to the MA(200) and that holder would make a double (average profit). And then exercise the warrants after the split.

I think that if the CD's were paid-off, this chart would go up to above $0.0035 where the warrant holder makes a profit.

$1,500,000 to pay the CD's and $5,000,000 from the Warrants.


AT $0.0035: CBPC would have a market value of $2.5 million before the warrants are exercised, and a market value of $7.5 million after the warrants are exercised. CD's paid-off, and there would be no debt, and CBPC would have $3.5 million in CASH, ... enough to go ahead for a couple more years and try to succeede.

A company that makes $1 million in revenues per quarter, can perfectly have a market value of above $7.5 million.

In fact, should be around $12 million, with a multiple of 3.

$12M/700M= $0.017, which is our major resistance above MA(200).


A market value of $12,000,000 is not at all out of the question, if the company would release some decent news. CBPC 2 years ago had a market value of x3 times that ($35 Million).


But again, we have no news and all is in the air. We have the chart with support at 0.0008 and resistance at $0.0013.

$0.0013 is the price where below it all the panic shares were sold last week after the R/S announcement.

I find it interesting that with over 150,000,000 shares traded, and that BAD news, ... the price didn't go much further, and didn't even hit 0.0008 that day.

If we break $0.0013 at EOD, we could think that the "panic shares" will have been accumulated.


So, we have $0.0008 support (market value= $560k) and $0.0013 resistance (market value= $910k).

These support and resistance levels correspond to a market value lower than 1st quarter revenues (we should see 2nd quarter revenues to see if they are better or not).


Still lots of information needed, but the chart should show what's going on, whether we go below $0.0008 or above $0.0013. And I don't see us breaking $0.0013 this week, as per the chart (ascending triangle's base resistance not clearing until a few more sessions.)



CBPC_2008-Jul-21.GIF



http://stockcharts.com/h-sc/ui?s=CBPC&p=D&yr=0&mn=6&dy=0&id=p01578006735






Follow me at your own risk; look where I'm fishin' LOL
All I say is my opinion &I could be wrong. Do your DD!
http://investorshub.advfn.com/boards/addBrdMrk.asp?board_id=11428