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Johnny4profits

11/11/13 2:19 PM

#171562 RE: covingtoninvestor1 #171560

This all sounds just great! GREAT!
Except for the possibility that KMAG will never trade on the OTC markets again and that these shareholders will not be connected to any company, just some shares being traded for the sake of trading. Technology is most likely great, obviously the industry sector is great, but don't see Jeff Reid bringing any of these old investors long for any ride into the future. Uncertainty is not based on the technology as much as it is based on the absence of a real company backing a real stock investment. Hope I'm wrong about this, but we all know what kind of an indicator HOPE is for for those investing.

Extremely sound e-mail and counsel. I have tried to make the same points even thought I have not met the man, only had two brief phone calls.

The key here, IMO is that there is great uncertainty in companies that are based on new technology which is evident by how long this company has been in business but has not yet been able to execute its business plan, even with sound technology. I am no expert on the technology so I cannot even speak to the KMA product line within the RFID industry but I can speak to new businesses and capitalizing new businesses.

I agree that wildly speculating on the value of this stock at this point is precisely that, wild speculation and not much more. It would be hard for me to believe that the patents held by the company are all that unique given the financial rewards coming in this industry. I have to believe that those tags in production are coming from others with similar technology. IMHO there is nothing wrong with the stock doubling to 1.7 cents, if it indeed does that and it might if indeed the latest discussions with a partner who can produce the product. I see it as almost inevitable that should KMAG indeed be the company that ends up producing its product line then it will have to source the capital necessary to do it with new equity in order to successfully place new debt. New equity means dilution.

It will be interesting to see how this plays out but I think it is a bit naïve to believe that our stock will take off at dizzying multiples from where it is today.

Again, only my opinion.