Good Morning Folks. Speculation about the future
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Posted On: 01/02/2019 11:53:33 AM
Good Morning Folks. Speculation about the future of this group of companies, invariably revolves around our stock, so why not look at another possible scenario. In this case, I suggest we consider a share buyback with the revenues anticipated from new product introductions and the massive distribution network Doctor Dalton developed with HRI.
Once again, we start with the 1.2 billion O/S and consider the fact that nearly one billion of that amount is deposited with the DTC.
For those who do not know what the DTC does, when the share certificates arrive at DTC, their Securities Processing staff thoroughly examines them all, performs a negotiability check and then verifies data received from the depositing member. This verification process allows a company to update shareholders regularly regarding the current share structure of the company even without news releases (Univec does this almost daily, and that service is handled by the DTC). This service supports securities on deposit in the Custody Service that are subject to reorganization events. So one might ask what type of company reorganization event might happen, as well as what might be likely.
In an earlier post, I suggested a share distribution to top managers at both Univec and AGRiMED. I still consider this likely because of the partnership these two companies formed. However, another distinct possibility is a share buyback. While I suggested a massive 200 million share distribution to each of the top AGRiMED managers, the amount is by no means carved in stone. Instead, a share buyback reducing the O/S by say half is also possible. Such a move would dramatically increase share values, and because pink sheet companies never do this without being certain of future and continued revenue, share prices typically increase far beyond the doubling effect one might anticipate. Such a move, if it were to occur, could take place just prior to a merger or even in conjunction, thus maximizing shareholder value. The resulting increase in share value diminishes the size and scope of possible reverse split options that a company might consider.
Once again, we start with the 1.2 billion O/S and consider the fact that nearly one billion of that amount is deposited with the DTC.
For those who do not know what the DTC does, when the share certificates arrive at DTC, their Securities Processing staff thoroughly examines them all, performs a negotiability check and then verifies data received from the depositing member. This verification process allows a company to update shareholders regularly regarding the current share structure of the company even without news releases (Univec does this almost daily, and that service is handled by the DTC). This service supports securities on deposit in the Custody Service that are subject to reorganization events. So one might ask what type of company reorganization event might happen, as well as what might be likely.
In an earlier post, I suggested a share distribution to top managers at both Univec and AGRiMED. I still consider this likely because of the partnership these two companies formed. However, another distinct possibility is a share buyback. While I suggested a massive 200 million share distribution to each of the top AGRiMED managers, the amount is by no means carved in stone. Instead, a share buyback reducing the O/S by say half is also possible. Such a move would dramatically increase share values, and because pink sheet companies never do this without being certain of future and continued revenue, share prices typically increase far beyond the doubling effect one might anticipate. Such a move, if it were to occur, could take place just prior to a merger or even in conjunction, thus maximizing shareholder value. The resulting increase in share value diminishes the size and scope of possible reverse split options that a company might consider.
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