Replies to post #45669 on California Grapes International, Inc (CAGR)

[smallfish7]

That doesn't work in Sub-Penny land...

It just sinks back down?

What they need to do is "use 10% of the profits to buy back shares till the share price takes off"

But that's not going to happen?

[Nikodemos]

Respectfully...nonsense!

Unless it is a clearing issue (Penson DTC etc.) then we could
discuss the merits. However, even then at the current planned
R/S their isn't enough room to stay up above $0.10 in my view.

Almost EVERY R/S I have ever witnessed (leaving ALMOST in there
as a safety as I can NOT RECALL ONE), went down after the
R/S.

In the end, this one will depend upon what Cali Grapes has on
& in it's books. If the books are good (which I doubt) & they
genuinely wanted access to China (which is a good thing imho)
then this could be different. But, I wouldn't count on it!!!

The R/S gives the company access to LIQUIDITY, something
GDHI sorely needs at this point. They still need MONEY to grow
their BUSINESS...PERIOD!!!

[Nikodemos]

Look, think of it this way. Why would I pay 1,000 times more
NOW for a stock (& it's merger value-- assuming there is merger
value there) when I don't know what I am buying?

IS the CG GHHI merger worth that? I don't know. None of us
have access to CG's books at this point. The website it rather
non-descript & I don't have any knowledge that suggests they
are worth 1,000 times what I could buy it for now.

So, that is what I would be buying it for NOW. THEN, ask yourself,
where is the upside, who is going to BUY the stock from ME
because they think it UNDERVALUED...


I am not trying to hurt people's wallets here. Just think this
through (what you are saying, claiming & put it in practical
common-sense terms). There are a HANDFUL of excellent undervalued
PS out there with a GREAT DEAL less risk!!! What is the compelling
reason to BUY this one over the others? I don't see one at the
moment & I am NOT buying it here....let's see the FACTS first.


However, this is HOPE investing not solid DD based upon an
anticipated market inefficiency & subsequent correction. We don't
even know what CG (Cali Grapes) is? But are they worth AT LEAST
1,000 times MORE with GDHI in this merger than now? The market
says no way or they would be SWALLOWING UP THESE SHARES.


Good Luck folks, I sincerely mean that.

[pantherj]

Maybe on AMEX and NYSE stocks, but not in penny land. no matter what management tells you, the one and only real reason is to free up shares to sell. its "Deja-Dilution."