We may wish that we could be trading the stock. However, we may be blessed in not trading at this point. Since our technology represents the cornerstone to our success, it is both our strength and our weakness. Weakness? How could it be a weakness when it offers the most efficient and profitable method yet to extract the most sought after metals in the world?
Well, it's weakness resides in the same reason for my investing in Haber at these bargain basement prices. With the share price so cheap, what would stop a large company from acquiring enough shares to take over the company? There are 172.5 million shares outstanding with 31.2 million shares held by insiders which leaves 141.2 million shares available for trading. Let's say that some entity starts to buy up those shares over a period of months at the average price of .20 cents a share in our lightly traded market. For somewhere between $25 and $30 million, a competitor could acquire a technology that would take them many time that to develp themselves.
Although we can not trade, we can't be taken over in a hostile move. This situation allows us the needed space to get back on our feet financially. The time buys us the opportunity to complete the deals that result in the leasing of our equipment. Once the cash flow hits the bottom line that will be the point to apply for relisting and maybe even gain some respect in this sector.
Thanks for sharing your insight Ozark. Your understanding of our present situation makes a lot of sense. Hopefully you are correct in your assumption.
ReplyDeleteTrying to make some lemonade out of a lemon? You do make some interesting talking points. I wonder if Haber has ever been approached as a take over candidate? If they have not; what is the reason? If they have; why have we not been informed?
ReplyDeleteAlso your outstanding share figure has jumped considerably from the 172.5 million a few years ago to the current figure which could be 220 or 200 million (based on how the 172.5 million was calculated). We were never told why it jumped but I guess it had to do with getting the new members of the executive team.
Hourly, thanks for the update on the share numbers. I tried to find the numbers and came up with those from the one source that I found.
ReplyDeleteAs far as making that tasty brew, I have found that paradox has served me mightly over the years. Finding the strengths in the vunerable spots has made me money and saved my hide before. In fact, I've found where persimmons have come in handy in a pinch. :-)
You know, when hard times hit, you should always look on the bright side even if its hard to find. This insight by hourly might just be our bright side.
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