STTK is a .0001 play. You buy at .0001 and every tick up is a doubling. The big risk for a .0001 play is a R/S and so, the fairly recent change in the A/S to unlimited is good for someone playing it as a .0001 play because it strongly suggests there will be no R/S near term. I regard the recent disclosure of insider ownership to be good news despite the O/S increase because it also suggests no near term R/S. Those insiders have a motive to sell higher than .0001 and that suits my interests.
As .0001 plays go its pretty good. It's an SEC filer with audited financials, an easily verifiable business, and annual revenues around 1.7M. If they manage to grow the business or simple have news which suggests such growth, the stock can move. We already had a nice move from .0001 to .0006 or so. That could happen again and maybe it will have better news to work with. I like that the debt converts at .0001, because it means creditors get .0001s despite the trading range and so, they are incentivized to take brakes and hope the stock can run a bit so they can sell into that. Contrast this with cases where debt conversion is a function of the trading range and the creditor has an incentive keep the stock touching .0001 so they can convert there or below.
STTK has been rough on those who thought of it as an investment or a different kind of trade. I think it is fair to say it was discernible earlier on that STTK would go down because of its convertible debt, relatively high burn rate/lack of operational profitability to turn the tide. Underwater shareholders that embraced the .0001 play when it became that, could have broke even at least as it climbed within the trips by matching the position at .0001. The risk rises of course as time passes and the O/S rises.
