InvestorsHub Logo
Followers 213
Posts 17350
Boards Moderated 1
Alias Born 03/02/2014

Re: None

Wednesday, 03/22/2017 2:45:29 PM

Wednesday, March 22, 2017 2:45:29 PM

Post# of 227039
Thoughts on DILUTION

Okay, I get that we are all concerned now with the pps growing and I probably wouldn't be doing this if the pps WAS going up and/or I had a bunch of other companies to follow, but I don't. So here I am. And just thinking out loud so don't get on my ass for this. Please. smile

Okay, for starters, I don't think there is ANY dilution going on here. I also believe our CEO to be truthful. But those are just MY opinions and, well, we really don't have much to go on without the financials do we? And, hell, I could be wrong on both those thoughts about dilution and James frown And not to mention that without the (gagged) transfer agent being able to release OS numbers we have to reply on information from the CEO himself. frown

Anyhow, I was reading a portion from the book "PENNY STOCKS FOR DUMMIES" by Peter Leeds. In the section entitled "What Penny Stock Investors Should Know About Dilution" he writes:

Penny stock dilution is a good thing.

If the company needs more money after its initial public offering, it can sell even more shares to generate the funds it needs.

Issuing new shares can decrease the proportionate value of each existing and new share, a result that investors call dilution. If a company doubles the total number of shares, the amount of money each share represents drops in half.

Every company needs to balance the ability to raise funds with the concerns caused by dilution.

The most obvious reason for issuing more shares is to raise funds.



He went on and listed a few reason why they might need to raise funds. One of them was for "Paying executives and key employees" and "Issuing new shares can help a publicly traded company by giving it the greatest flexibility to take advantage of opportunities as it implements its business plan."

He also listed the DETRIMENTAL side of dilution such as "Any time a company issues new shares, the share of ownership of each stock is reduced." and "Dilution can also hold share prices down even when the company's value grows."

Which got me thinking, how is this company, NOW, generating any revenue to operate? And the talk about "acquisitions", well, where would the money come from to acquire anything if they aren't generating any revenue? Now as far as CHIF goes (which, I guess, is now a part of NSAV, in the "COMPANY INFORMATION AND DISCLOSURE STATEMENT OF 28, FEBRUARY 2017 they mention "We the company have acquired Red Mansion LLC, whose primary asset is Naomi Village Resort. The Company acquired the Red Mansion LLC on 16 February 2017."

Now I certainly don't know how much revenue they are making with Naomi Village Resort, as of yet, but do know that they are involved in a couple lawsuits they have filed against two different parties. (1) with its bank/lender for approximately $1.7 million" and (2)" its insurer for $2,000,000.00."

Will be great to settle them lawsuits and move on. But until then, again, where is their revenue coming from? Are they diluting or not?

Your thoughts welcome. Oh, and please be nice. smile


$NSAV