AII, the June's buy?The coming weeks may turn out to be very good buying time for AII.
According to the news releases, the trial with Panamco should end at the end of July or the beginning of August (two months from May 23, 2000), just one month or so before the option of GECFS expires (warrants to acquire up to 19% of AdvantEDGE's subordinate voting shares at $2.50 before August, 31 2000)!
What if everything goes right? A second successful contract - this time with a private company - should add positive momentum to AII. That would be further evidence that there is an immediate market for AdvantEDGE's wireless system. What if this momentum is strong enough to make GECFS exercises their option? Add the NASDAQ Index at a bottom - I would bet that the bottom is not far - and you may have a "buy now" situation.
Well! My problem here is the actual low share price of AII. If things were to go that way, wouldn't we see stronger support on the buying side? Or is it simply because AII is a relatively risky speculative buy - an innovative business model based on one new "product" that must make it - in a very weak market? Or is that a sign that a low priced financing is just ahead?
So, from there on, I would be looking for increasing buying support - specially in July - as it may indicates that the trial is going fine and that affairs are going right.
Best to all
Zario