FX I must confess I have wondered whether you consider me one of the "morons" or "self professed research kings" referred to in your post 9625508.
I don't think I have made any claims to particular expertise in this regard even though I write for one of the two leading professional publishers on, amongst other things, investment research. I'm not sure that such emotive language enriches the debate here. I do note that neither you nor anyone else posting here, has attempted to answer the two questions I posed in post 9624195.
As a lawyer (who practised in commercial litigation and debt recovery for one of the big four banks in another life back in the 1980s) allow me to observe that what the announcement and the statement in the Dec 2012 financials actually disclosed is: "....or a S$6m (A$4.7m) payment in cash at a future time. [no date specified] No decision has been made by the previous owner and the parties agreed on Friday 16th August 2013 to meet to dioscuss the issue."
IRT your post 9623057 the use of words "at a future time" as well as news of "the meeting" both tend to indicate that there is no issue of trading whilst insolvent.
The test as I recall it is whether the directors allowed the company to continue to trade when they knew, or ought reasonably to have known, that the company couldn't pay its debts as and when they fell due.
I suspect this announcement was actually posted as a positive prior to the negotiations in Singapore.
Frankly it doesn't surprise me that potential investors in PrIME are waiting for the significant life sciences fund to conclude the its funding deal before committing or that that the significant life sciences fund is dragging the chain to extract the best terms they can for themselves. I would expect them to drag the process out until they judge they have achieved the best deal possible without prejudicing the project.
Further while I am not a believer in the efficient market concept, it is nonetheless interesting to note that investors in NuSep aren't rushing for the doors. There are only four sellers at present with orders ranging from 5.4 cents to 10 cents for a total of less than 400,000 shares and there are also three bids unfilled all above the 4 cent close! I interpret from this that there is no panic amongst the bulk of shareholders despite predictions of doom and emotive language.
As I have said before this is a speculative stock. Perhaps there should be more focus on sharing risk to get this useful medical / healthcare advance to market rather than on short term gain. Our end product is not just any comodity and frankly what does it matter where the SP is as long as progress is being made.
Some have argued that there is no progress and this company is run with only one object in mind, namely to pay excessive remuneration packages to directors and executives. I reject this as a jaundiced view. It seems to me that by any objective measure progress is being made, particularly in the PrIME plant. We were also told at recent meetings that substantial progress has been made with SpermSep and that the gels division is trading profitably. The directors have acknowledged that things could have been done better in the past, that they are restricted by confidentiality contracts from sharing all the positive developments at this juncture (which continues to prevent them from buying on market at present) and that they are committed to being proactive about governance issues in the future.
Does all this eliminate risk and ensure that our investment in the company will ultimately be successful? Of course not...but I think it is a very reasonable speculative play at current prices in a company whose products will do some real good when and if they get established in the marketplace. What's more I think the very limited volume market for NuSep shares agrees with me.
DYOR
Kind regards,
MEM Price at posting:
4.0¢ Sentiment: Buy Disclosure: Not Held
(20min delay)
