By: nextwiz
01 Aug 2007, 03:24 PM EDT
Msg. 31119 of 31162
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My analysis of the CC:
GSCT/GSHF debt to equity diltuion is over. Since we are maxed out on the authorized shares, ANY kind of dilution is over. If we see a new registration statement for more authorized, as possibly hinted at, head for the hills. In the meantime, we have NO MORE overhead PPS downward pressure. The stock floats and hopefully begins its travels north.
3:1 ratio of merger will stick...KK said he is not messing with that whatsoever. GSGF has 53 million is contracted agreements and well over 100 million in upcoming sales. GSHF owns 50%+ of GSGF, so existing GSCT shareholders get that play included. I think the shares to own are GSCT right now because you get COES, with 30 million in Corn Oil extraction agreements with up to 90 million in equipment sales with 90 million in annual royalties, you get the ownership of GS Enviro by GSGF, you get 50%+ of GSGF itself, everything else in GSCT, the intellectual proerty of old GSCR, and Greenshifts holdings. Once the merger is done, you have all of this in your shares.
Merger will take 6-9 months to complete after the filing. KK mentioned his goal for future capital raising will be that of CONVENTIONAL debt, which is EXACTLY what this company needs. It avoids dilution and captures the faith of the institutional investors. He also says that existing cash flows are funding current operations and before the reinvestment into this own operations, GSCT/GSHF are cash flow positive. This doesn't mean NET PROFIT, but its a bridge that must be crossed on the way to getting there.
No real surprises today but mostly an upbeat, semi-optmistic CC that should equate to helping to foster more belief in this company as well as bringing a more appropriately valued PPS. GSHF should have a market cap of at least 100 million, IMO.
Good things to come....
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