Comments on SOM share price (5th May 2010)
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Thus it was a very wise move to keep the balance of the shares restricted and thus the company and the shares protected.
A bright forecast
The picture is, of course, quite different now:
1. The company has grown substantially in operation and value
2. Our income is growing
3. We have three positive sources of major funding about to come to fruition
4. We have a likely fourth source of institutional funding
5. We are about to engage in a major marketing campaign that will bring in new business and create buying interest
6. We are about to distribute all shares to shareholders
7. There will be a buyback of shares just ASAP so there will be no anxiety to sell.
When all of this happens, the share price will not only become stable and strong but it will also rise. The current estimated real value of the company is somewhere between €0.80 and €1.50.
Recent selling activity
Even though 41,000 shares were traded on the market at a price of €0.30 on 4th May 2010, it really is nothing at all to worry about. Consider that the seller obtained €12,300. Such a small amount is quite useless for any sort of corporate purpose. It is also not credible that any major investor in SOM who is aware of the imminent breakthrough potential would sell at that price. What would they do that for? Would you?
In my view the seller is either an original CIT shareholder or a SOM shareholder of restricted shares. In any event that person must be driven by the negative emotion of fear else why sell when SOM is about to break through into the big time? In any trade, there must also be a buyer and the buyer, of course, takes the opposite view to the seller. The buyer is positive and sees an opportunity. So, when the share price reaches €10 this buyer will have made €400,000 for the small price of €12,300. Quite a bargain! The seller, I would think, sadly, must be one of life’s losers, the buyer is obviously shrewd and a winner.
Bottom line
So my advice and the bottom line is, “Do not worry at all about the current share price”, IT IS MEANINGLESS. Don’t even bother looking at the share price. Just ignore it.
Paul Miller, (Published on 05 May 2010)
Disclaimer:
I have complete confidence in the Spirit On Media operation. This is based on a detailed and ongoing analysis that satisfies me to the extent that I have invested heavily in the operation. Because all investments carry a degree of risk, I can only offer my opinion and pass on the statements given to me either directly by the Directors of SOM or indirectly by other investors. I offer my services only to pass on opinion and information received. My opinion is that the risk of loss is now vanishingly small while the potential for huge reward is very great. Nevertheless, because this is only an opinion, I offer no guarantee whatever either express or implied in any communication verbal or written
