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Re: to xji : What is your take on the shelf?     11-Nov-09 01:45 pm    
Hi Lucinda, good day to you.

CVM had a very bad experience 7 months ago. Capital totally dried up, within a two month period of time, investment capital just totally dried up. During that span of time, any company in start up mode, and that relies on the sale of stock to finance operations were in a world of hurt. Some did not make it through....their obligations were not variable enough to allow management to weather the storm, and they folded. CVM was approaching the working capital cliff, and I think got close enough to look over. Geert did not like that feeling, and he saw how far down the bottom was.....he didn't like that either. He will not put the company in that position again. The shelf is an opportunistic move. It is there in case someone comes along willing to buy a major block of shares at a price that the company thinks is reasonable. But clearly he needs to wait to utilize the shares made available through this shelf until he can minimize dilution. They are well capitalize right now, however, the H1N1 opportunity has thrust upon the company cash flow requirements, I'm sure, that were not anticipated a year ago, or even six months ago. Gert knows that his cash flow model has changed, and needs to put the company in a position, through the shelf, to raise additional working capital should the company need to do that. Now, here's the real important point for we investors.....the shelf is there because of the POTENTIAL need to use it, right? The potential need to accelerate working capital creation would only be the case if there were viable and promising things to spend the money on, right? So for those of us watching recent company developments, and taking those developments to a favorable outcome (particularly the JH's study), one could easily understand the need to have a shelf out there, ready for investors to sink their teeth into within a 24/48 hour period (post positive and compelling news).

I love seeing the company going out with a bold statement like this with this shelf offering......they have confidence. So what are they confident in? That's the 60 thousand dollar question.

If they just need cash, Geert would go out with a shelf grabbing $2M, $5M maybe even $10M....but $40M??? That's a big shelf for CVM. That conveys management confidence. That is good for us.

Exciting days ahead, and congrats for buying wisely today! Me too. (The overall risk of the stock going lower, or back down into the the below $1 levels gets higher by the day, so buying on smaller dips instead of waiting for it to go back below a $1 is prudent. Now it might go down that far, but I'm saying the probability of it continually going back down to those levels are getting fewer, and fewer, and fewer with each passing PR article.)
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  Subject Author Rating Time of Post (ET)  
 
X, I am interested in your opinion. Lucinda
lucindasloa... 11-Nov-09 01:26 pm  
 
Re: to xji : What is your take on the shelf?
xji590 11-Nov-09 01:45 pm  
 
Thoughtful post.
chickenhead... Rate it 11-Nov-09 01:49 pm  
 
Hi again Mr chickenhead. This whole thr...
teddy1898 (1 Rating) 11-Nov-09 05:35 pm  
 
Back to the top of the heap, no disrespe...
hurricaneji... Rate it 12-Nov-09 03:06 pm  
 
Now this is a post. Of course I'm no ex...
hurricaneji... Rate it 12-Nov-09 03:23 pm  
 
Great post, xji!!! Well done - 5 stars!
hitting4ave... (1 Rating) 11-Nov-09 01:51 pm  
 
top of the world!
hurricaneji... Rate it 12-Nov-09 04:20 pm  
 
My IQ is going back up again after reading th...
cvmgutcheck... Rate it 11-Nov-09 01:53 pm  
 
xji, thanx for the explanation makes plenty o...
whynot1790 Rate it 11-Nov-09 01:54 pm  
 
Excellent insights! I too got (positively) e...
nerdmajeure Rate it 11-Nov-09 01:55 pm  
 
thanks for your thoughts...hope your right......
dougholen1 Rate it 11-Nov-09 01:58 pm  
 
Xji - tremendous post of clarity and inspirat...
jonathon_ho... Rate it 11-Nov-09 01:59 pm  
 
Excellent post XJI, Oh and I would also like ...
texacoon62 Rate it 11-Nov-09 02:00 pm  
 
good post xji yeah, some don't love this t...
fosco.sinib... Rate it 11-Nov-09 02:01 pm  
 
X, I knew I could count on you to clearly art...
lucindasloa... Rate it 11-Nov-09 02:02 pm  
 
Great, thoughtful, intelligent post XJI. Thi...
wintersmast... Rate it 11-Nov-09 02:08 pm  
 
Totally agree! Good to see you back. I don't ...
yinh76 Rate it 11-Nov-09 02:10 pm  
 
thanks, a helpful post
tropical333... Rate it 11-Nov-09 02:14 pm  
 
Most of the posts on these message boards are...
hcadamsiii Rate it 11-Nov-09 03:01 pm  
 
Excellent post.
toomanyjust... Rate it 11-Nov-09 04:56 pm  
 
Excellent post. GLTA
pour159 Rate it 11-Nov-09 05:03 pm  
 
Thanx X, your one of the very few I take stoc...
hoganhawk47 Rate it 11-Nov-09 07:43 pm  
 
xj, That is arguably the best thought out ...
town_and_co...
Online Now
Rate it 11-Nov-09 08:59 pm  
 
they never use the shelf while it trades...
mthsbth (1 Rating) 11-Nov-09 09:09 pm  
 
i think a partnership will be announced very soon....
clausonwill (2 Ratings) 11-Nov-09 02:01 pm  
 
why do they need big money for a partnership?...
padreneben Rate it 11-Nov-09 02:03 pm  
 
Can they just sell a partnership for the...
cortese.lon... Rate it 11-Nov-09 02:07 pm  
 
so the partner has an interest in the gr...
clausonwill (1 Rating) 11-Nov-09 02:12 pm  
 
Clausen is right here folks. Think...
xji590 11-Nov-09 02:40 pm  
 
Once again X great post. Now I...
texacoon62 Rate it 11-Nov-09 02:44 pm  
 
It just keeps getting better.
lucindasloa... Rate it 11-Nov-09 02:51 pm  
 
Dude you have what it tak...
cajunrock1 (2 Ratings) 11-Nov-09 03:16 pm  
 
Again, good dissecting. This i...
yinh76 Rate it 11-Nov-09 05:13 pm  
 
Exactly. It's not being set up a...
paulsilhan@... 11-Nov-09 05:35 pm  
 
absolutely right.
xji590 Rate it 11-Nov-09 05:38 pm  
 
X, See how much help you ...
lucindasloa... (1 Rating) 11-Nov-09 05:43 pm  
 
And if in fact this shelf...
paulsilhan@... 11-Nov-09 06:00 pm  
 
On TOP!
fh1672 Rate it 12-Nov-09 08:34 pm  
 
Because then the money sp...
paulsilhan@... (1 Rating) 11-Nov-09 06:05 pm  
 
Geert always said that they wanted to go it a...
frankforwin Rate it 13-Nov-09 07:10 am  
 
Thanks a bunch for sharing all this with us xj. We...
imax_01 Rate it 11-Nov-09 09:14 pm  
 
Keep on top!
fh1672 Rate it 12-Nov-09 04:22 pm  
 
Tip Top post deserves top billing, sure as he...
hurricaneji... Rate it 12-Nov-09 04:32 pm  
 
one more deserved trip to the top
hurricaneji... Rate it 12-Nov-09 06:48 pm  
 
and another, why not? It's better ...
wintersmast... Rate it 12-Nov-09 07:03 pm  
 
...putting it up top just to pizz-off "The" stockv...
sadnock Rate it 12-Nov-09 08:53 pm  
 
up...up...and away, to the top.
hurricaneji... Rate it 13-Nov-09 06:36 am  
 
back to the top with a better take than ...
hurricaneji... Rate it 15-Nov-09 09:16 pm  
 
back to the top to mute djohdj the ...
hurricaneji... Rate it 16-Nov-09 11:22 am  
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CEL-SCI Corp. (CVM)

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