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Re: None

Friday, 02/05/2016 10:46:32 AM

Friday, February 05, 2016 10:46:32 AM

Post# of 106828
.26, Going DOWN IN FLAMES, LOL !!

Gawd, what a total POS. This thing has one direction and one certainty- it goes DOWN and the shares get DILUTED, LOL !!

0.26 / 0.30 (5000 x 2500)

That's ONE CENT from the recent (Dec 2015) all, all, all TIME LOW of 25 CENTS, aka .00025 split corrected for the recent massive 1000 to 1 reverse split.

BUT HEY- they do have a "new name" (LOL), so they sorta got that going for um !!

This thing is in free-fall, once they stopped the little Form-4 buying gimmick, which propped the Ask up for as long as it lasted, which wasn't VERY LONG, LOL !!

Even with the latest big ole dilution number from that S-1/a they just filed, which put the new ever expanding share count at about 1.9 million- the market cap is still massively collapsing:

.26 X 1,900,000 = $494,000 bucks (LOL !)

Come on, really? A public traded company with a freaking sub $500K market cap?
How they gonna survive on that, especially with some big ole law suits now? At some point even the convertible debt boys throw in the towel and won't loan much of anything to um. Notice those latest toxic loan deals in the SEC S-1/a were for pittances of $25K each. Like that's maybe about as much as some hedge lender is even willing to risk at one time on this pile- knowing they gotta convert it and get out with a profit still.

If some toxic debt hedge firm is running a conversion right about now- at this 26 CENT range, then they're gonna be getting dilution shares at almost 50% off that price, which would mean dilution share pouring on at about 14 CENTS.

So some dilution lender gets a pile of dilution shares at approx 14 CENTS- that means they can dump n sell um for even 21 CENTS and still be making 50% return on their money in a very short time period.

It's got nowhere to go but DOWN IMO. They must be close to OUT OF CASH at any given moment, day, hour. I just don't see what other reality is possible? Interest on their big debts, paying law firms all day long, lease, insurance, salaries - who knows whatever else they spend on? They had $65K TOTAL CASH last time they listed their cash balance- and now are mired in lawsuits, they had like $2 MILLION in accounts payable, they owe everybody but the freaking kitchen sink money, LOL !! If they ain't using monopoly money- then what are they paying the bills with?

MAKES NO SENSE TO ME? NONE? They gotta be hanging on by a shoe string at this point, IMO. A shoe string that seems like it's about to break, LOL !! NOT GOOD. NOT LOOKING GOOD HERE AT ALL IMO.

Just looks like a CLASSIC "death spiral" playing out to me. Toxic debt, un-ending use of it, and the resulting end of a death spiral, via massive, never ending, on-going, price crushing dilution. That's all I see.

http://www.sec.gov/answers/convertibles.htm

https://en.wikipedia.org/wiki/Death_spiral_financing

http://www.bloomberg.com/news/articles/2015-03-12/josh-sason-made-millions-from-penny-stock-financing

http://www.bloombergview.com/articles/2015-03-12/death-spiral-convertible-financier-has-a-lot-of-fun

Posts contain only my amateur opinions, personal views and thoughts. I discuss stocks as a hobby only. Always do one's own due diligence before investing.