Good questions to ask Dr. Owen. I think we would all appreciate a little more transparency and that is the truth.
As far as the world-wide recession being an issue? I believe that Alda is least sensitive to that compared with most other public companies. We are not commodity linked. We are not US linked. I feel demand for these products, the ones Alda is developing, is growing. Spending will be cut on discretionaries as witnessed in car and auto sales. Large companies will cut back on capex. Consumers may stop buying iphones and other consumer elctronics. Does this affect disinfectant sales? Hand sanitizer sales? Is Rexall going to lower the shelf space they provide for sanitizers? I highly doubt that cutbacks on spending will come on what people consider a basic BIOLOGICAL NEED. People are becoming more aware and more concerned about these issues and this is not where you will see spending cuts UNLESS the world is actually ending which I doubt.
The one risk with recession. FINANCING and CASH. I for one feel if they manage their resources properly they have PLENTY of cash to weather this storm. We can last AT LEAST 2 years. If Alda can start to show some signs of organic growth things could move fast. Best case scenario we get a significant sales contract, get an infusion of cash, warrants and options are excercised and we no longer require the cash unless they need it to fuel even further growth. Worst case scenario...the world is actually ending, all financial institutions collapse and there is literally no movement of capital...Alda then fails to generate any sales, run out of money and are forced to do financing at very unfavourable levels, current shareholders get washed out in the dlution death spiral. The key to getting out of this whole thing alive and well? ORGANIC GROWTH
When your a company as small as Alda with 7.5 M mcap, ~250k in sales it is all about scale. We all know its a lot easier to go up from 7.5MCAP than it is to go up from 200BMCAP. That is why we are all here. Alda can generate 100% revenue growth with another 250k in sales and 250k is a very small # when you look at the current GROWING sales of this market as a whole. IMO Alda should utilize it's resources towards trying to capture market share and bringing those new products on market ASAP.
Sometimes I wonder who is selling at 3 times cash...? Not to mention the virtually 0 debt...
