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Re: clearcoated post# 175

Monday, 07/21/2008 8:19:12 PM

Monday, July 21, 2008 8:19:12 PM

Post# of 365
The numbers they show for the warrants are pre-split. They don't say what happens with the warrants post-split.

The antidilution thing, as I see it, means that if the O/S increases, they get more warrants at a lower price.

Right now, the warrants would be somewhere at $0.04 to $0.05 and there would be 115 million warrants or so.

I found it curious that there is a company that suddenly got to own that amount of shares very recently. Do they plan on selling those shares while they exercise the warrants ? ...

... if that were the case, then we should expect a run to above $0.05 pre-split. Major news would be needed for that type of run, to get the Market Value to where it was 18 months ago, at $35,000,000.


Right now, what we must see, is a hold of the 0.0008 and a break of the $0.0013-0.0015 resistance level, and then we'll see what happens next.

Volume has shrinked a lot, and there is a big crowd of MM's at 0.0009x0.0010. Good or Bad news will be needed to break this narrow trading level, one way or the other, imho.
With the pending R/S, and with the Shareholder Meeting plus the 10Q coming shortly, we will soon get something (hope something good, LOL).

With the O/S=A/S, not even the Warrants can be exercised, and there are still $1.5 million in CD's.

imho, the company needs to get rid of the CD's and have the Warrants exercised. I don't know if this R/S will not affect the warrants, in which case, there will be an O/S of 7 million shares at $0.10 and 12 to 15 million warrants at $0.35 average (Class A & B + Finder), after the Reverse Split.

In this scenario, it would suffice to get up to the recent GAP, and the Warrants will be at a profit if exercised. It wouldn't be a huge multibagger, but I'd take it, LOL!

It would post-split, like if we now went to that 0.0035-0.0045 GAP, and maybe to the recent $0.0070 highs, or the MA(200).

The Warrant Holders would get a profit, the company would get $5,000,000 Cash, and the CD's could be cancelled with a small part of that cash, thus leaving $3.5 million cash still.

Perfect scenario and a Market Value $2.5 to $5 million between $0.0035 and $0.0070 (before the Warrant Conversions); and $7.5 to $10 million Market Value (after the Warrant Conversions).



We'll see what happens.




Follow me at your own risk; look where I'm fishin' LOL
All I say is my opinion &I could be wrong. Do your DD!
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