Avecho Biotechnology Ord Shs V.AVE

More multi-year lows and IR thinks this is "No BIG DEAL"!

[rusty777]

Well. another day and we are down again with oil up now over $73.00 (so you would think that services like DSKE should reflect increased activity in the field). I spoke with IR - interesting conversation - not sure if I have ever spoken with a more condescending individual before (then again, I have never spoken with the current resident of the White House) who advised me that "multi year lows are meaningless since they have only been trading for a few years" and furthermore, "small caps have more volatility" (Duh!!) and I should "wait until their earnings come out&" - well the last earnings DID come out - clearly the market was unimpressed then and I see no reason for it to be any more enthusiastic when the next earnings are announced.  Interest rates are rising and these folks have been on a spending spree with borrowed capital such that their Debt is now over 600 million with a net worth of about 465 million and a market cap of just over 500 million.  As rates increase this debt is only going to hurt them more.  

I was hopeful when they bought out AVE that we would see some improvement in our investment - now - well - not so much.  It appears that they were simply trying to buy out the competition in order to improve their own profitability - sadly, it doesn't appear that the competition was the issue.  Even with the competition gone they can't seem to improve share value.  I pity the poor folks who bought into this charade when it was over $14.00 and have lost almost 50% of their investment - I suspect we will see a rush to sell over the next few weeks as Tax Loss selling kicks in and the institutions dump those companies which have failed so miserably to perform.

GLTO (we are going to need it)

Rusty