Crrent StatusWhat's happening to SamSys ? No one really knows yet.
I'll summarize the events.
- Share price was slowly dropping with lack of GEN 2 sales, most other RFID plays have declined as well.
- A number of good NR's after the AGM had the effect of a temporary up tick in PPS.
- PP announced and PPS drops and seems to be maintained around $1.5 waiting for the announcement.
- Price breaks through $1.5 and a single house starts to sell without regard for the price they receive.
- NO mass selling by anyone other than one house. And those shares that sold were bought by someone who believes they are getting a good deal. (which IMHO they did)
- Cliff is in no mood to sell shares into a PP at this price.
- $6.3m in the bank as of June 15.
- SamSys comes out with good news eg. first Gen2 reader available.
- SamSys products still being touted by vendors as best in its class.
- The QTR. that just ended will show increased sales once again.
- Large list of VAR's is just waiting for GEN2 tags in order to begin selling SamSys readers to end users. SamSys is WELL established in the RFID industry as a leader in its field.
Synopsis:
Timing, timing, timing.
No one knew that someone was going to dump over a million shares without regard for price. That's what is causing the pps break down.
Would you continue to look for money on the open market if this was your company trading at a recent lows ? Not me !!
So now SamSys is forced into looking elsewhere for cash. This takes time especially in light of the recent PPS.
Comments:
Am I happy with the recent events? Nope I'm P.O. to put it mildly. Do I think SamSys has a chance to recover. Yup, SamSys is so well positioned within the RFID market with excellent products they will make it through this dark time.
Gen2 tags are now available so end users can now buy their hardware they have been waiting for. Lot's of this hardware is going to be SamSys hardware. Some of it won't be labeled SamSys on the outside, but "SamSys inside".
Where is the money the PP was supposed to raise going to come from? That's the million $ question.
All that is needed at this point is a large order and the financing becomes a mute point, and there is enough money in the bank at this point to take us to year end.
John