RE:RE:RE:What's going on here?ctblizzard wrote: I have posted my concerns about this stock a few times here on the board. But Id just say to watch the US stock ITMSF for signs of something brewing. Currently it is not trading like a deal is about to happen.
But , in interest of fairness there are some recent positives.
1-As part of the US infrastructure bill the Import/Export bank was refunded. This is huge news. While it might not apply in the IMP case (not sure on that) I know a bunch of other companies waiting to renew credit lines and such and the IEB insures the credit lines on lots of smalll business international contracts. If there is such a delay in this case, the bill is scheduled to be signed next week by the President.
2- I reviewed the recent financials. I feel they are much improved and moving in the right direction. A company starving for cash adjusts, gets lean and closer to break even is in better shape to shoot up when good new arrives.
As mentioned in my earlier posts I really like this business and their products and expertise and hope this works out for them, but as described in their risk factor notes lots of things can go wrong with international contracts. Especially long drawn out negotiations and with companies with negative working capital and expensive financing that are almost out of cash.
However, if they do this deal, my predictions are higher than others here. i think there is no reason the stock would not shoot up to levels higher than it was when it had less business a few years ago. 2 bucks or better. I do hope they clear out those Vertex people though. As helpful as they have been to staying afloat it is way too high a rate to pay .
Considering a small position in the US stock (very small)
Best of luck to everyone
Basically the time on the second and final guidance given is quickly counting down, but I have to disagree with the sentiment that ITMSF 'isn't rading like a company about to close a deal'. Nobody knows, so there's nothing to leak. Rates in the U.S. are on the rise, smallcaps are selling off, vix is on the rise and potential tax loss selling and mm'ing going on.. Those are hindering support. Bottom line, if the deal were to close today we are at an immediate double as of next market open. That's in the rhelm of normality, considering that If deal has fallen apart we'd be at .10, so. Price and volume are in the rhelm of normality here. Nothing fishy.
Secondly, CTBlizzard, you state that you like the company's financial standing as per recent quarterly, you like the business, yet risk is high due to negative working capital and tight budgetary concerns/low cash... implying your fear that the longer the negotiations go, the higher the risk... then you conclude with "
I do hope they clear out those Vertex people though". Let me say it slowly, in the case the deal stretches into 2016, Vertex is our best friend, and the only thing holding us back from dilution. You need them. Interest payments in dollar amounts are nothing when considering the payoff, imo.