So far it appears that RandomCapital has been right on the money with regards to Converted Organics. RC: what's your opinion buy/sell/hold - 5 year perspective and why? If buy at what price? Trading at $2.30 as of this moment? Could you point me to some resource to help me understand the mechanics or what you predicted would happen?
I don't see any redeeming features in this company. After seeing the latest financials and BS press releases, I wouldn't even buy it with YOUR money. Cheers!
I stopped by one of their facilities because I just happened to be in the area and the doors were padlocked with no signs posted. This thing is a scam company and another Stoney pump and dump. Stoney, what happened to China Fire and Landec? More scam companies from your hedge fund buddies?
I attended their presentation at Paulson Investment's Westergaard Conference a couple of weeks ago. I did ask the CEO a very direct and provocative question whether we are to expect a further stock dilution. He sort of dismissed it saying that they are redeeming warants and new debt will not be convertible. I don't think the company is a complete scam because I saw the guy with my own eyes but who knows perhaps people can be audacious to lie in front of an audience standing almost withing arms reach.
Quoting 10K: "As shown in the accompanying consolidated financial statements, the Company has incurred a net loss of approximately $16.2 million during the year ended December 31, 2008, has a working capital deficiency as of December 31, 2008 and an accumulated deficit of approximately $26.6 million. These factors raise substantial doubt about the Companyâs ability to continue as a going concern." Elsewhere in the report is says: "We do not have any commitments for additional equity or debt funding, and, there is no assurance that capital in any form would be available to us, and if available, on terms and conditions that are acceptable. Moreover, we are not permitted to borrow any future funds unless we obtain the consent of the bondholders of the New Jersey Economic Development Bond. We have obtained such consent for prior financing, but there is no guarantee that we can obtain such consent in the future." And finally: "In connection with the 2008 Financing, we entered into a Security Agreement with the investors whereby we granted the investors a security interest in Converted Organics of California, LLC and any and all assets that are acquired by the use of funds from the 2008 Financing. In addition, we granted the investors a security interest in Converted Organics of Woodbridge, LLC and all assets subordinate only to the current lien held by the holder of the bonds issued in connection with the Woodbridge facility of approximately $17,500,000." Am I reading it wrong or is the company done and whatever assets of value (the operating LLCs) have been pledged as collateral?
Looks like the accountants just took off the "going concern" clause. They are selling product in Walmart (Puerto Rico), Home Depot and Whole Foods. Quite a few other stores too. Revenue up 65%. I think this is one to watch right here.
Amazing, I give you guys another fish and I am here talking to myself. Do I need to go to the politics and religion section to find you guys?
I understand this has a much larger float then when it went from 3 to 15 dollars...about 500% larger...however, the volume has increased and I think its at least a double from here. Maybe into the high 2s or even 3s...the volume today was impressivs at 6 million and if that keeps increasing it might make up for some of the larger float.