Subject: Clbe investor!!!!! Here is the reason for the recent decline....... From clbenve PostID 420479 On Sunday, September 04, 2005 (EST) at 2:22:04 PM
CONVERTIBLE NOTES, CONVERTIBLE NOTES,
management are being fool by the creditors, the creditors have 60days since july 8 2005 to convert their notes to common shares, and they want the close trading price as low as they can, so they can convert the notes to total of 56 millions shares, but DO NOT WORRY since the fair value for the company suppose to be $0.23 X 39.000.000 shares(before dilution)= about 8 millions, now they have almost 100 millions outstanding shares= so the fair value is suppose to be $0.08 X 100.000.000= 8 millions, so after 60 days from 8 july 2005 or 6 september 2005, the price will jump to 8 cents, yes, 8 cents, coz the creditors already get the shares that they want. All the recent decline is being manupulate by the creditors, BUT there is a risk that the stock price will not jump if and only if the creditors start selling their shares, THAT's the nightmare for LONGS, the creditors only paid $2 millions for 56 millions shares, they got a good deal, they only pay 3.5 cents a share, so at the current price of $0.044, they still make money, so I could say that the bottom of clbe.ob is probably $0.035 but the upside could be $0.08 (if we count the fair value as I described above),We all know that management should not make this stupid deal that cause 150% dilution....I don't know whether they did it in purpose or they just need the money desperately.....good luck longs, I will hold my shares though, the market cap now is only about $4millions, you only pay $4millions for 4 subsidiaries, and one of them is a stem cell company, look at the cheapest stem cell company around, at least they worth for $10 millions......
The Good news: 1. the management put a limitation of 4.99% for each creditor to own the company's total shares at one time. So the 4 creditors only can convert at most 16-17% of the total shares, 3 creditors has a right to convert 5% each and 1 creditor only can convert about 2%. 2. the management has a right to buy back the notes if the stock price go below 14 cents, that's a good one.....but i don't know how they can get the funds......(?????) 3. Maybe the creditors had only converted their notes to common stock on july 8 2005 at 9 cents, coz, at that time they had a right to convert their notes at 9 cents, and it looked preety reasonable since the stock price was at 20 cents, they made a profit for 11 cents on paper gain, if they already did, this action will explain the recent slide, coz they might already sold the shares all the way down from 20 cents to 9 cents, I don't understand for some people who sell it below 9 cents, the company itself tought that the fair value of the company is 9 cents.
The Bad news: 1. for the next conversion for the convertible notes, the creditors might get very very cheap, coz they can convert it to 50% of average of three lowest trading stock price, and it would be less than 2.5 cents, BUT BUT remember the management could buy back the notes if the stock price go below 14 cents, and I really hope the management will do so, it's so stupid if they let the creditors to convert the notes at that price level.
And the good news for someone who bought at below 9 cents: DON'T worry coz it'll go back up to 9 cents, 9 cents is the fair value of the company...................
GOOD LUCK LONGS, once lifestem get a partner to develope the logistic device, at that time longs will be rich, especially for someone who bought at below 9 cents..........
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