JRVR - -Good 10Q - Nice and clean .
-No "going concern" statement so no chance they are going under - to the contrary, they are just starting out - company changed hands in June 2003 and is just beginning to implement growth strategy.
-Small operating costs to be covered by management - CEO is putting his own money down. Financing appears covered for at least next 9 months giving reduced chance for dilution from convertibles - currently no convertible debentures.
-Good balance sheet with positive equity.
-Low shares out - in between 30-50 mil.
-Negligible debt and minimal accumulated deficit .
-Recent Acquisition of JRC Global Products, Inc. - New business starting up with new management and big plans:
<b><i>"In the beginning, the purpose of this new subsidiary will be to conduct wholesale purchases of plastic products to sell in the Eastern United States. As the business grows with additional products and customers, we anticipate future expansion throughout both the U.S. and internationally." </b></i>
-Dealing with large companies:
<b><i>"...entered into an agreement with a large international plastic manufacturer, to distribute their products throughout the Eastern United States." </b></i>
-<b>$2 million in gross sales in first deal - and forecasting growth: </b>
<i>"Consistent with our strategic plan, we will begin to distribute plastic products in the Northeast United States with plans to distribute throughout the entire United States within the near future. We estimate this agreement to be <b>valued at approximately $2 million in gross sales in the first year." </b></i>
-NEWS just recently beginning to come with the promise of more very soon - more deals planned <b>“within near future”.</b> Expect NEWS on Mergers/Acquisitions.
-Recent drop appears S-8 related, but overall shares out still low. S-8 should be drying up. 25 mil S-8 with 18 mil of it for employee incentives - only 7 mil is for consultants, indicating that majority of shares will be in hands that will hold.
-Currently near 52 week low - lots of room to move up quickly. Shouldn’t stay down this low long.
-Volume is consistently high and 50 day average price is over .03 - that’s about a double from here but should go higher with business developments.
-Can reach profitability easily with the right moves - may already be there.
Seen it many times before, new business starting up with S-8 to kick start - share price goes down, S-8 dries up, and business picks up. That's the way it works. So far so good. Next step is NEWS announcing developments. Then, high possibility of big gains.