Hello JB, I think HIMR generating revenue from anything (but selling shares) is good news, but it is disappointing in not being the news we want to hear - on-site permit for Bayano.
I don't know much about kenuf. Typically Ag. producers are focused on economic efficiency in context. Environmental concerns have some focused on environmental efficiency first and then asking - can I make a business of this? Apparently kenuf is very environmentally efficient in relation to concerns about global warning and is also very viable financially. One source I read put projected profit margin around 33%, but the source was dated. Whitten kenaf is a variety developed by researchers in Mississippi that is viable as food for people due to the flavor of its leaves. Kenuf has a variety of uses, most pertinent would be as fibrous material for paper and building materials. It could be used for animal feed, including for a fish farm.
It is fine to have complimentary ventures like kenuf/hemp/kins domain. Many of HIMR's potential clients would probably benefit and like these sorts of things and over the long haul it can facilitate the core business of underwater logging. It seems plausibly it could be near term profitable and any profit helps.
On youtube there is a long boring series of videos about kins domain and on one of those Bruce Perlowin notes how whenever a milestone in the acceptance of MMJ/Hemp/MJ the group of affiliated stocks has a big move and in a PR of HEMP's (I think) they noted that HEMP affiliated stocks have had big gains since becoming affiliated. HIMR is the exception. I think in forging this alliance with HEMP they are sincerely trying to benefit the company and the stock, but the stock hasn't responded and the dilution pressure it brings with it endangers the stock further. Maybe this sale of kenuf by HIMR is a bit contrived by Perlowin to mitigate against the near term dilution risk posed by our commitments to HEMP. I wouldn't be surprised by that. Those videos show Bruce to be a full on hippie who sincerely wants to supports his partners. If that is what this is, thanks Bruce. The business could benefit over the long haul from this complimentary venture, but it isn't known what costs there are separate from the obligations we know about or how fast this venture can be operationally profitable.
The market has rewarded MMJ producers, but would HIMR benefit if they became in part an industrial hemp producer - I don't know, maybe not. There might be a problem in the way most think of MMJ and industrial hemp as mutually exclusive. Some seem to believe most if not all of the medicinal benefit is in the CBD. And so, if you are a company like ILIV which acts on the belief the benefit is in the CBD and produces CBD products, wouldn't so-called industrial hemp be a better source of CBD, since the THC is avoided. It is clear from some googleing and reading that there are patients out there in search of CBD in isolation. My point is just that although the division between industrial hemp and MJ to get high is clear, the division between industrial hemp and MMJ is likely to become less clear because some are after the CBD. Maybe if they could erode the idea that industrial is not MMJ, an industrial hemp producer could perform better in the market.
Our concern should about whether they will do an R/S or try to forge ahead with a huge and expanding O/S. In the absence of a revenue they probably don't know the answer themselves. I wasn't worried about an R/S when we were under 10B or 20B, but now it is a concern. Earlier on we would get assurances they wouldn't do a near term R/S, but it has been a while since they did that. I sent them an email in part asking for such a reassurance. I didn't get a reply. Due to the raised risk I sold most of my shares, but still have some and would be willing to add if the facts change. Any news that helps avoid an R/S is good news.
I am hoping for news about a North American concession. I think a North American concession can have a comparable and even better near term profit margin due to shipping being a major component of the expenses - long ago we read an article that quoted $20 per board foot with a North American concession - there is a lot of old growth logs underwater, some believe Lake Superior's Checaumegon Bay has as much as a million old growth logs 60 feet down, for example. That is comparable to what Ardan charges for cocobola before shipping (24.65). Having North American operations they can talk about would take the pressure off in dealing with foreign concessions. A fully disclosed North American concession might do more for the stock near term than a barely disclosed concession in Panama, assuming it was operational. The advantage of some of these foreign concessions in addition to exotics (Panama, Brazil, Ghana) is the vastness of the resource combined with the relative shallowness of the lakes. There is tremendous long term potential there, but a North American concession could easily be a faster path to revenue - it depends on the sort of deal that is struck with partners. With Panama, they say they can't say much about it, maybe the same would be true in Brazil. I think the silence of Triton is most likely due to the contentiousness of their profitability in Ghana, so that would probably be a "we can't say much" situation too, at least at first. Having a concession they can fully talk about is needed. Probably part of the problem is they are pursuing deals based on the belief they have technology that hasn't been built. So, partners probably won't want to yield much until they see it perform. I think they made a sequencing mistake there, they should have built it a long time ago, even if dilution proceeds is the only way.
That's enough rambling for now.
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