The one on Friday just said they plan to hire people to help with distribution "Recent additions of operations managers, business developers, technical writers, investor relations, marketing consultant and sales professionals, will enable Hollund to increase the Company's progression into the industry; marketing both Hollund and its Timber."...."the logging operations are only one part of this process" stated Sheldon Romain, "Marketing this Timber has now become a front and center topic."
Mondays PR reiterates that the primary focus is distribution and finding appropriate distribution partners. They say daily timber recovery plans are on target and given that the current yearly estimate would be at least 960,000 board feet. They plan to increase production later in the year with the goal of getting production up around 5M board feet per year. Reading between the lines, I take this to mean one crew can do around 1M board feet per year, but they plan to build up to five crews later in the year after they progress in establishing distribution channels.
In a confidential communique I had some time ago with a different industry member, they said harvesting is only about 25% of the work. It is illegal to export unprocessed wood from Panama, so you mill there and you have find someone to sell to. These PRs make sense under a scenario of normal progress.
I think they are making progress. But again, it can only matter for the stock if they prove they exist and really have operations AND the diluters stay on the sidelines for awhile.
It seems dumb for noteholders to convert and dilute here because they should want a stable trading range and good volume because the shares they are allotted are a function of the amount loaned and the trading range. However, the last quarterly report showed one noteholder converting to receive 2.26M shares to cover $21,378 (the amount owed plus interest). That noteholder needs to sell above .01 to make money. So they may help to account for the churn we our seeing. The C holders would be in the know and would likely wait.
The O/S number as of 12/10/14 is 8,729,643, which would mean there was a little dilution other than that note. Still, the craziest rises I've seen were with low floats, they weren't this low but they also didn't have the extreme gloomy market sentiment of having recently had an R/S.
Will HIMR ever prove themselves? Waiting and hoping.
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