Have you feared a cheap buyout as much as I have? It had flitted over my mind's recesses when I first wrote to this forum that it was possible that an early buyout would deny us all the benefits of this remarkable technology. Essentailly, if this is as smart as we believe it is, then won't other companies spot it and buy us out.
Some have declared on this forum they would sell out at $10, others will consider various amounts and have stated this. Some have suggested SI, who holds millions of shares, may determine what happens. The recent efforts at estimating a future share price have encouraged me to look at valuations. One aspect seems certain: if this technology is disruptive, then there will shortly come a time when a sudden dawning of truth hits and a rapid rise in share price will drag this technology under the gaze of those with huge sums of money, and who could offer tempting share price offers.
Perhaps the most important question is: what is the best way to protect a company with a brilliant idea, but, as yet, an unrewarded shareprice? Well, in my humble opinion, encouraging the shares to be purchased by those who wish to see future growth rather than owning the technology. Such institutions are pension funds, insurance companies, investment and unit trusts etc. Where are these located: New York, London, Frankfurt. How do you interest them; I say, by being on the NASDAQ.
My thesis suggests that the essential nature of a reverse split is to enable this company to get on the NASDAQ prontissimo (remember all the naysayers). When substantial share numbers are held by institutions, they are far less inclined to sell out to cheapskate $10 offers. The best way we have of making serious wealth is buy hanging on to our shares, encouraging a NASDAQ listing ASAP, and being patient. Think of one item, and it is well within the bounds of possibility: if the company takes a % of a 500 Billion dollar market in the next 18 months the company earns a lot. As the company's overheads are currently small, then large profit equates to dividends. Additionally, if you take 1% this year why not 2% the year after. Give me a share price based on that you experts and use a proper technology P/E like 40 - 80.
My most humble advice is: don't sell out at a piffling 10$, wait a while, think big, not small like aunt Minnie flogging the silver on the sideboard. Join the major league where your dividends annually exceed the profits of a sale at minor current share prices. Behave like a tycoon not a bear; "where's the cigar box my dear". "In the Rolls Charles".
David
