Posted On: 07/09/2016 6:51:25 PM
Post# of 30038
If you were ever going to buy AMBS, now would be the time to do so. We are under a $4 million market cap. There are about 70 million shares outstanding and as people point out the dilution continues every day- someone said at the current rate we are on our way to having 150 million shares outstanding in a year. So what? Then we will be at a $7.5 million dollar market cap or about 1/10 of what analysts said the company was worth a year ago.
Even if they authorized a share increase tomorrow to 500 million shares AND they converted all of the shares the next day, we would still only be at a market cap of $25 million 1/3 of where the market cap was a year ago. That is how ridiculously undervalued this stock is. The fear all along has been a true death spiral, but for that to happen they will need several billion shares. The current price has pretty much all of the worst case scenarios already baked in. Suppose the JV deal with ESS turns out to be a bust and they get little or no money upfront- what would the price do- drop to 4 cents? Now what if they actually do a deal that reflects the real value of ESS, what would the price do then?
The reason they are in default on the loans is because GC cancelled the meeting to increase the A/S and do the reverse split- I would much rather be in default.
In the last 3 months GC has refused to increase the A/S or do the RS, apparently fired the CFO, paid down and renegotiated with the toxic lenders to abide by the leak-out agreements,(which they have done), stabilized the share price, and is in the late stages of negotiating a partnership agreement for ESS. Granted he has done a horrible job as CEO up until recently and that is why the stock fell 99.9%, but that is why this is now an opportunity to buy - things appear to be turning around. As Warren Buffet says, when others are fearful, be greedy and when others are greedy, be fearful.
Even if they authorized a share increase tomorrow to 500 million shares AND they converted all of the shares the next day, we would still only be at a market cap of $25 million 1/3 of where the market cap was a year ago. That is how ridiculously undervalued this stock is. The fear all along has been a true death spiral, but for that to happen they will need several billion shares. The current price has pretty much all of the worst case scenarios already baked in. Suppose the JV deal with ESS turns out to be a bust and they get little or no money upfront- what would the price do- drop to 4 cents? Now what if they actually do a deal that reflects the real value of ESS, what would the price do then?
The reason they are in default on the loans is because GC cancelled the meeting to increase the A/S and do the reverse split- I would much rather be in default.
In the last 3 months GC has refused to increase the A/S or do the RS, apparently fired the CFO, paid down and renegotiated with the toxic lenders to abide by the leak-out agreements,(which they have done), stabilized the share price, and is in the late stages of negotiating a partnership agreement for ESS. Granted he has done a horrible job as CEO up until recently and that is why the stock fell 99.9%, but that is why this is now an opportunity to buy - things appear to be turning around. As Warren Buffet says, when others are fearful, be greedy and when others are greedy, be fearful.
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