The reason I invested in this stock at these level
Post# of 30067
(Total Views: 456)
Posted On: 06/16/2017 4:04:42 PM
The reason I invested in this stock at these levels has nothing to do with the Company or GC. All that matters are the assets. If the deal is right, the money is always there. Period. It only takes 3 or 4 million in funding to completely turn this company around. There is nothing but upside at these levels.
Even if they filed BK tomorrow, the shareholders would get more than 3 cents per share. Do the math. They paid $12 million just for ESS alone. They have 20 million in liabilities and 79 million in outstanding shares. If they go beyond the deadline, the toxics will still not dump- maybe a little as they did a few months ago, but they can't for very long. Why not? Because there is only 150 million in AS. In fact when jack Brewer went to convert more shares- GC refused to give him the shares- that is why he is suing. They need to have at least a billion to do a true death spiral. That would need to be approved by Chan. Think he is going to do that? The toxics just want their money. The reason this is not a typical death spiral stock and why the toxics didn't dump more, is because this company actually has value- the lenders know that they will get their money in the long run if the company is turned around. Magna could have filed a suit a year ago- they didn't. Also I like how JP says they will seize the assets- the only people who can seize anything is the Government. If this went to Bk, it will be tied up in court for a couple years- the toxics would have to wait a couple years for their money just like the shareholders. But even in that case, the stock would rebound, no doubt because there would a ton of companies bidding on the assets- plenty of time for shareholders to make some money. Think this is going to zero? Guess what - it already did. We were at $20, now we are at 3 cents and people aren't buying because they are afraid the stock is going to go down lol. We are trading as though we are already in BK. Check out any company in BK- hard to find any of them trading at less than a couple million MC. Look at AFFY- co. no longer exists- zero assets, no office, no employees still 2 million MC.
But BK won't even happen- why? Because Chan won't let it. He can loan the $3 million tomorrow and close the deal . Then convert his notes and own 1/3 of the company for basically making a $3 million loan. Bottom line, is these assets are too valuable for a deal not to get done. Everybody is not going to sit around in a circle and watch the assets be sold off in BK court a year from now. Chan loaned AMBS another 100K AFTER he asked for the changes to the LOI. It's also secured with shares of AVDX and AMBS- think he would have done if he thought the shares would become worthless?
There is a BIG difference between raising money now as opposed to last year. Before, the toxics were in the way. No one would loan money at decent terms because they couldn't and still be protected knowing that the floorless notes could wipe them out by converting and dumping shares. So even when International Infusion and the guy who owns the camper Co. wanted to make a loan, they had to do the same floorless terms. But now, the toxics have agreed to the new terms, so all that has to happen, is inject $3 million and the deal is done.
Even if they filed BK tomorrow, the shareholders would get more than 3 cents per share. Do the math. They paid $12 million just for ESS alone. They have 20 million in liabilities and 79 million in outstanding shares. If they go beyond the deadline, the toxics will still not dump- maybe a little as they did a few months ago, but they can't for very long. Why not? Because there is only 150 million in AS. In fact when jack Brewer went to convert more shares- GC refused to give him the shares- that is why he is suing. They need to have at least a billion to do a true death spiral. That would need to be approved by Chan. Think he is going to do that? The toxics just want their money. The reason this is not a typical death spiral stock and why the toxics didn't dump more, is because this company actually has value- the lenders know that they will get their money in the long run if the company is turned around. Magna could have filed a suit a year ago- they didn't. Also I like how JP says they will seize the assets- the only people who can seize anything is the Government. If this went to Bk, it will be tied up in court for a couple years- the toxics would have to wait a couple years for their money just like the shareholders. But even in that case, the stock would rebound, no doubt because there would a ton of companies bidding on the assets- plenty of time for shareholders to make some money. Think this is going to zero? Guess what - it already did. We were at $20, now we are at 3 cents and people aren't buying because they are afraid the stock is going to go down lol. We are trading as though we are already in BK. Check out any company in BK- hard to find any of them trading at less than a couple million MC. Look at AFFY- co. no longer exists- zero assets, no office, no employees still 2 million MC.
But BK won't even happen- why? Because Chan won't let it. He can loan the $3 million tomorrow and close the deal . Then convert his notes and own 1/3 of the company for basically making a $3 million loan. Bottom line, is these assets are too valuable for a deal not to get done. Everybody is not going to sit around in a circle and watch the assets be sold off in BK court a year from now. Chan loaned AMBS another 100K AFTER he asked for the changes to the LOI. It's also secured with shares of AVDX and AMBS- think he would have done if he thought the shares would become worthless?
There is a BIG difference between raising money now as opposed to last year. Before, the toxics were in the way. No one would loan money at decent terms because they couldn't and still be protected knowing that the floorless notes could wipe them out by converting and dumping shares. So even when International Infusion and the guy who owns the camper Co. wanted to make a loan, they had to do the same floorless terms. But now, the toxics have agreed to the new terms, so all that has to happen, is inject $3 million and the deal is done.
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