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Helter Skelter

01/04/11 1:15 PM

#21409 RE: molee #21400

Hello, molee.

Interesting turn of events.

Just some observations:

(1) BS, sperber, somehow, apparently, managed to hang onto 60,000 preferred shares. They can convert to 600,000 common shares. He'll wait until after the reverse split to convert, obviously, in my opinion, as the preferred shares will not be split.

(2) The remaining 15,940,000 preferred shares can convert to ~160M common shares. Pinksheet securities have a restrictive period of at least one year. 10M preferred shares are past the one year mark. 3M shares will pass the one year mark on March 4th, 2011 and the remaining 3M shares on May 3rd, 2011. Volume formula restrictions would still apply for affiliates/control persons.

(3) 20M common shares were issued, on July 28th, 2010, in connection with a conertible loan. Details weren't released but the shares should be restricted until July 28th, 2011. Equates to 400,000 common shares post split. Approximately 13.3% of the OS. If those shares are still held then they should be/have been disclosed, as a greater than 5% beneficial owner, which I don't see in the table provided below {all preferred shares}:



(4) If the 1:50 reverse split takes place then the float would be ~3M and the OS approximately the same. The OS, fully diluted w/o any further common/preferred share issuances, would be 163M {3M current common + 160M common potentially converted from preferred, 10:1 ratio}.

(5) Current price of $.0012 x $.0013 would equate to $.06 to $.065 post 1:50 reverse split giving the company an approximate $180,000 to $195,000 market cap {if the current price per share prevails until the split occurs} which would seem to be very undervalued.

(6) Company turned a profit, for first 10 months in 2010, of $26,102. Equates to $.0087 EPS {$26,102/3,000,000 shares OS post-split}. Equates to $.17 with a PE ratio of 20. So, again, the current pps {$.06 to $.065 post-split} seems very undervalued based on the fundamentals of the company. Note that they are currently experiencing robust growth with a strategic shift in the business plan. There was a major decrease, in revenues, from 2008 to 2009 but for just the 10 month period of 2010 there is an increase, in revenues, of approximately 41% {$1,492,694 vs $1,062,093 2009} and an increase in those 10 months vs the entire year 2008 {$1,492,694 vs $1,416,051 2008}. Revenues were running at approximately $150,000 per month, so, add $300,000 to the 2010 revenues and it comes out to ~$1,800,000 2010, which would be an increase of ~28% over 2008 revenues and an increase of almost 70% for the projected, entire year 2010 vs year 2009.

Current interpretation of success, and actual results derived from, executing the plan to address the working capital issues, referenced in paragraph two, below, are, obviously, crucial to the future outlook of the price per share. If there is heavy dilution then we all know what will, eventually, likely happen. If resolving the working capital deficit issue is executed favorly then the company looks poised for a potentially, great outlook.



Working capital/cash flow addressed, again, in Going Concern statement:



(7) I don't know what the barriers to entry are {easy, moderate or difficult} in their field/industry but noticed that they have an agreement, substanital agreement, with PB Roses, Inc. who will receive 20% of the net income...for provision of that particular product line. This board should do more DD/research on the propriety of OPH's products...to determine the different levels of potential competitors' barriers to entry, existing competitors, etc, etc...



(8) I don't like the Current Assets vs Current Liabilities nor the Total Assets vs Total Liabilities "situation", however, a good portion of the debt is "friendly debt", hopefully {see NOTE-6, below}:





(9) I do like the revenues running at an approximate $150,000 per-month-clip and the fact that their cash balance also increased, ever so slightly, for the period. Needs to increase a lot more, however, to enable paring down the liabilities over assets disparity and to fund future growth. And I like that, for this 10 month period anyway, they ARE profitable. Bottom line, though: They do need cash.



Cash flow positive, barely:



(0) I haven't had time to "search" other sources and perform a scan on the background of the new principals so I must add..."to be continued"...and, as far as I'm concerned...this "change in registrant" does not "erase" the personal culpability of sperber and antoine from any transgressions and illegalities committed.

This post is...JMO

Disclosure: I'm a buyer/gambler going into the RS.

Good day.And good luck.