GREY:ATIVF - Post by User
Comment by
badactoron Jan 28, 2011 2:15pm
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Post# 18041788
RE: RE: RE: I hate to say it but....
RE: RE: RE: I hate to say it but....It is not that important what the SP will be after consolidation (it will rise) as whether or not the SP remains at the post consolidation price. Unless ACT has new revenue or can make a living off existing accounts the SP in all probability will drift downward. Usually post consolidation the SP slides unless management has some great news to get out on the street soon after consolidation.
ACT has some existing customers that gives the company some ongoing income however if the sales & time of installation time can't be cut dramatically it will languish in obscurity for years. The income might be enough to keep insiders employed but not enough to attract new money or investors. It will become dead money for a very long time. Management is not about to tell us anything until after the consolidation. A new round of financing will be required which of course will start the dilution all over again.
So if ACT cannot or doesn't attract new customers for their product line just like a grape it will wither on the vine & investors will be stuck holding useless stock with no chance of SP appreciation even if there is enough money to keep the management team in wages.
Post consolidation requires ACT to quickly secure new contracts,do a financing to give them the money to work with (if required) & attract new investor & customers. This is a difficult task for a consolidated company for as stated here in the past who wants to buy a product if the are not confident that the company will survive to install & maintain the product line.
This company is between a rock & a hard place make no mistake about it. Although it trades at a penny an investor might have just a good a chance of making money playing a penny slot machine at a casino as making it off ACT. So if you can't afford to lose it don't but it. Hope this helps & GL2E.