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EncounterCare Solutions, Inc. Message Board

  • doctorcashflow doctorcashflow Jan 17, 2014 2:55 PM Flag

    now that ECSL has broken out, some observations and questions

    now that the stock has broken out, and i've read the past month or so of posts, some observations and questions...
    1. presuming these big product orders really materialize from new partners and/or customers, the next hurdle becomes execution. rapid revenue growth happens rarely w/o hiccups, some minor, some major.
    2. execution won't be a snap given the thin balance sheet as of 9-30-13. basically little cash to support what presumably will be a massive need for working capital. from where will that come? a meaningful dilutive equity offering, a debt deal, a bank line of credit? i've seen many public and private cos crushed by huge working capital requirements (a/r and inventory).
    3. those who talk of a stock split, forget it for the foreseeable future. Stocks tend to not receive broker or institutional sponsorship until they eclipse $5/sh. 'to the moon' almost never happens on the orders of retail investors.
    4. as for the ideas of splitting the company into 2 or 3 parts, be aware of the costs of undertaking such an endeavor or a spinoff. it's not cheap being a public co given sec reporting requirements among many things. a spinoff may be a legit idea down the road, but no time soon.
    5. ron mills diligence and patience appear admirable as he attempts to have as many ducks in a row as possible before the onset of the hoped-for rapid order and revenue growth. he is not, however, from the promised land. mr. murphy lurks around every corner.
    6. fyi, i am a share owner and have placed my bet on the potential success of the 96 octane enhanced methanol gas and other water absorbing and additive blends. may whatever setbacks that materialize be dealt with quickly and professionally. Even more, proactive mgmt that pre-plans for possible contingencies appeal to me, and it strikes me mr. mills is of that ilk. time will tell.

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