Replies to post #53056 on CBA Florida Inc. (fka CBAI)

[barrystyle]

I am not usually the type of person to just follow along with something just because someone says it is a good thing to do. I like to be able to rationalize my decisions. So far, I'm blindly following. However, I'm not ready to bail just yet.

Remember... "Matthew Schissler has been named chairman of the Biotech Committee for the Nevada Development Authority"

If Matt says this is a win for shareholders, I'm going to believe him until proven otherwise. If CBAI was a scam, and Matt was just looking to line his own pockets, why would Nevada put so much faith in him. Nevada trusts him to help make them money (attracting new businesses), why shouldn't I?

I think the problem is, people thought they would be rewarded this year with massive gains (ie... retiring on a private island). Instead, the reward might be a more reasonable gain with growth over the years to come. It is a let down, but I still think I'll profit if I hold long enough, and profit is nothing to be mad about.

[tradinguru]

Lets post the whole answer to the question Pit instead of an exerpt. After all, the whole answer is what people want to know, not just the part that is cut and pasted so the CEO can be blasted.

Q: After the RS, why dilute the shares again to get the share-holders back in the hole?

A:You're making and assumption that I can't speculate on. So lets go into theory. We know that MEX purchase price is $17.8M approx. Our NPV calculations on the samples (70,000) is $70M (1,000) per sample. So we are paying 17.8M ...to get 70M NPV. This isn't dilution, this is a huge win for all shareholders. Just quadrupled the value. The market seems to settle in on the right valuation over time. Now, Lets look at history. We paid a total of $7M for the 5 acquisitions we have made so far. And our market value went from $2M to $25M in that time frame, so we got a net $23M of value for $7M in cash. The market still had us a $25M valuation prior to Friday. I would argue that is correct (basically our sample base asset value, minus our debt and shareholders deficit). Again, this is theory, but it is the theory we run our company by.