Replies to post #4829 on Crystal Intl Travel Group Inc. (fka CINT)

[ThePennyTrader]

I will respond very briefly to that post.

Despite the fact that we know Mr. Dugan sold his previous company for X amount of dollars, what we don't know if how much of that money he actually took home with him.

In any case CINT is a publicly traded company, not a privately held company. Being that it is publicly traded it would not make sense for someone like Mr. Dugan to contribute money out of his own pocket directly to pay for the companies expenditures. Think about that for a second. Do you supposed the major board members of the automakers and banks are writing checks out of their personal checking account to fund the business? Heck no. As CINT is a public company just like every other public stock, the stockholders are basically responsible for such expenditures until such time that the company can turn a profit and only need further stock issues for major projects when they don't want to dip into working capital.

So at this time we can assume that CINT is not operating a profit, and to expect Mr. Dugan to personally finance the public company shows a real lack of understanding of public stocks in the first place.

[stervc]

Argyll, to add...

Generally speaking, a company wants to pay salaries and expenses from the Revenues generated from the company. If the company was only generating but so much Revenue at such time as the $135,068 for the year ended 7-31-08 as you mentioned, then the only options are to not pay anything or to simply offer using shares to pay the salaries. I guess he could have taken money out of the $125 million that he sold his private company for to pay salaries and expenses, but that would not have been right considering the reason for existing as a public entity.

From some DD that I have previously done privately and publicly, I don't think that they have any more money issues. I will call the company to verify just to see what they say, but I am humbly asking that you also call the company too and ask some of these questions to see if what we get is consistent.

I really do think that something major is about to be released here in the next couple of weeks or so or less (give or take). Only a guess.

By all means, I am very new to CINT so I don’t want to seem like I’m defending the company dilution trend that had transpired in the past, but I do think that any dilution that happened in the past is just that… in the past. I think CINT will transform to be an investment and not a trade. IMHO

v/r
Sterling