RE: other pestiside free producers@Mucks,
That's an excellent question. On the up side:
- As a fertilizer, worm castings are well known to work well and be odour-free.
- The general concept of the product is good.
- The specifics of FTE's product seems to be well accepted by at least one major customer.
- The annual 2X - 3X price fluctuation is predictable and at less than anickel a share it seemss easy to get in and make a buck.
- The management team is putting their own money into the company in order to provide bridge financing. They wouldn't do that if there wasn't reasonable expectation to get it back, or they can afford to lose it.
On the down side:
- The company is still in an R&D mode and hasn't actually turned a profit.
- Their methods and processes aren't at a commercial scale yet.
- The nature of the business makes it difficult to scale up quickly.
- If their worm population dies tomorrow, they're out of business.
- The board of directors is made up of fund managers and lawyers. There isn't a single worm guy in the bunch.
- Their last company was de-listed for failing to file financial records
- Their last company was an oil and gas exploration company. What do these guys know about oil & gas exploration? Perhaps that's why it went bust. Perhaps that's why FTE will go bust too.
- The annual price fluctuations are getting smaller. Will the trend continue?
The management makes me uneasy. These fellas know business and can make money with any business. I'm sure they know lots of sneaky tricks to get rich, and I don't think they much care if shareholders get hurt along the way. Once this company goes bust I'm sure they'll find another venture to play with.
Need proof? Visit
www.sedar.com and read every submitted item for this company for the past 6 months.