reality check

Whilst I hate to interrupt this love fest for everthing STI. This is what is more commonly known as the ol' pump and dump. Lots more punters have taken the risk, thinking they are getting in on the ground floor of the 'next big thing' only to do some research after they have bought and said to themselves 'I wish I had researched this company first'. But, they figure, well STI have some good products and have just acquired some property at unbelievable prices, so I might as well just average down on the inevitable retrace. But it just doesn't go back up. Their dilema is to take a minimum 7% loss or hold and wait.

This last presentation provided no new informtion, and was not even marked price sensitive yet people just piled in anyway.

Just because Boonen thinks that the plant is worth $20m and the penthouse is worth $2.5m, does not make it so. The replacement value of my house is in the region of $2m according to my insurance company and that doesn't even include the land it is on, but I would sell it immediately if I could sell it for that. But the reality is that nobody would pay that. Remember also that the penthouse was supposed to be mortgaged but instead a capital raising was conducted in order to pay for it outright. Perhaps the banks thought that STI's valuation was a little off the mark and refused to mortgage it to a company with no income. Seems reasonable.

Now, P. Boonen would have you believe that day traders are all over STI and cannot take a long term view (this guy is an ex-broker by the way and should know better). Why would day traders be all over this, when the chances of selling for a profit on any given day is a very rare event indeed.

The reality is that once you are sucked in, you often have to wait weeks or months to get out for your purchase price. People sucked in like you and me are exiting because they have have waited literally months in order to not take a substantial loss.

Now, other posters will say that I am overly negative and downramping and continually posting like a disgruntled ex-holder. So be it, but it doesn't mean that what I say is not true and plenty of other posters will give you the sanitised version of STI's reality.

Since Boonen took over, their have been little to no sales. They have lived from capital raising to capital raising. This is why the sp never gets very far.

All talk, very little action is STI's gameplan. And their highly anticipated launch included some beauty products and some nappies. Are they kidding? Be very wary.