What is this worth now, is a question...Well, yes, the biggest question is liquidity and ability to carry on operations as an ongoing entity. Then it's whether this all leads to production that is profitable which can remedy ongoing cash needs, or even give you the time to sell to somebody who knows how to run this operation. Even if you just satisfy cash needs short term, and can project reasonably that assets and future will continue to improve, it will enable you to sell this sort of situation at a reasonable price, within whatever the current environment is. The problem here for investors of course, NONE of this is clear. We have various views about cash, ranging from they have a few months, to they do not have enough for even that. Those that claim to have spoken to company are far from clear on this. In other words, they do not know the actual facts, and only conjecture. Meanwhile the company says nothing.
There are only a few facts here that can be accepted as true, I suppose and some very basic questions which managment and this BOD should be answering RIGHT NOW.IMO.
1. Last financials, showing that cash was low in terms of needs.IMO So where is it at EXACTLY, right now? Lets hear the facts on this NOW.
2. Stock price has dropped to record lows. Even way below buying from "interested" party which seems to have acquired a position of around 10% IE somebody was buying large amounts, while others were selling. When that buying stopped, sales continued and it dropped sharply again. Friday, it seemed to be trying to form some sort of bottom. We shall see this week if that is true or not. Why have they not commented to date?
3. If what is needed is short term cash, to survive, it seems illogical that a major buyer would have taken positions at much higher price, just a short time ago, without the managment being aware of this and going to this group and offering them a deal. I mean what did this group base their purchase on? Were they just speculating, and if so on what? It seems very unlikely to me, that they would have bought so much on nothing but hope. They must be another group who themselves have to be pissed at this point, unless of course there is much more involved than just them speculating on future price. I believe managment is fully aware of why this group bought. The only question is whether, if so, it is just another screw up, or part of some ongoing deal.IMO
4. BOD should clarify what has gone on to date: contracts that are not contracts it appears(who is responsible directly for this?), Roscan nonsense a time waster and destroyer of value and confidence big time, Prognoz uncertainty and shaggy dog story (will next release be same old blah blah blah we are still negotiating blah blah), committees that have done what so far for stock price, cap or anything as far as I can see, coupled with a complete lack of corporate ability to instill ANY investor confidence and almost non existent communication ability when needed most.IMO. I have said it very often: this is not acceptable from Managment and the BOD in my opinion.
5. If they need cash, then why wouldn't they have gone to a party buying millions of shares on the open market and have offered them a private placement, at a discount to the price they were purchasing at. After all, if you are buying millions of shares at a price far greater than where we are at now and the company needs to raise money, you have an interested party, NO?????? So now do you fund at .15 ??? This appears to be sooooo stupid, it is beyond description. IMO This is ALL about managment, focus, decision making, execution of clean clear deals, and timing, as I see it. But who knows how these guys think or function?????? Does anyone know? Of course not, as what has the "new" BOD said or done to date that you can relate to??? Once again, that being the problem here. Nobody knows it seems. And I as a shareholder, and you folks should DEMAND answers. It is that simple. What are they doing? What is their plan? Have they completely f'ckd up here, or not? Or will the previous SELLER(s), suddenly take down a private placement or some such, maybe even funding it with the proceeds of their sales to date? You never know here, that is for sure. This would at least be one explanation for the death spiral, as it is not unheard of when stupid deals are signed, based on pricing at some future date or time frame, as I have mentioned previously.
5. The ONE possible little light here, is that somebody did buy at one point. Hopefully they did so for a good reason, based on their assumption that the future would unfold, and HRG would survive. Even better, they new it would survive! But of course we do not even know why this occurred. If it was acquisition pre an offer, then an offer would appear to be in the cards, but not clear. However, it is as reasonable as any conjecture here. If anyone actually knows who bought those shares, it might prove to be a very strong indicator of what is really going on.IMO
So BOD, managment, say something. Or maybe a little birdie will fly in and let somebody know.
So lets have this weeks predictions: Price, news releases, takeover, other deals. They can't be much worse than last weeks!!! LOL