So...are we just talking about diluting or does someone have any actual data supporting there has been additional diluting since the Reverse split? Just curious. Also, I'm curious as to how long some of you guys have been stock holders, because I've been watching this stock a while and have only seen one R/S. Do we have any current data on outstanding shares, etc? Actual data...not hunches?

Hadn't thought of that, but it makes sense. Good call out.

I agree that this stock is well under valued and see huge potential upside here with the current prices. However, I'm not sure I see a huge short squeeze. The site I usually use to help determine how significant a short squeeze might be is http://www.shortsqueeze.com and the site seems to indicate that it would be relatively small. That is, it would take less than 1 day for the shorts to get covered. From my experience, a stock needs to be 2+ days for it to be significant.

I was one of those buys.

people panicing. stock hit .0005 back in mid November. Took off like a rocket after that. it will likely happen again. great time to buy IMO.

Too funny. You aren't here to warn people Pip. Not sure why you're here, but it's definitely not to warn people.

Wouldn't be the first time. Happened pretty recently actually. Check the stock history. Hit .0035 shortly there after.

By the way PipBoy, is this all you do all day? Monitor boards and point out when a stock might be dilluted or could fall? Do you actually buy stocks? Are you a short seller? Or do you just have nothing better to do?

Even if it was 2 billion (which remains to be seen), it would still be undervalued. Market cap would still be well below what I think this company is worth. And that's with 2 billion maxed out (which is very unlikely to happen even if the A/S has been raised to that point). I'm not really worried about that. More interested in seeing that revenue grow and some PRs.

I'm anticipating a pretty decent day today. Good news yesterday. No definite news of an A/S increase as of yet. Good revenue results. Market cap very low compared to the value of the company. All signs point to a run in the near future IMO

I've been on board for a few weeks. Accumulating when it dips, taking some profit when it spikes. Great stock to make money with. Very much undervalued if you ask me. I think there's money to be made in the short term and long term.

come on! slap that ask!

Slept in this morning. Just getting on. Happy day before Thanksgiving! Any truth in that Pitt Deal post? Or just wishful thinking?

It may be some time before we know for sure. We may not even know tomorrow if what was said about OTC's not having the same filing requirements.

I still don't see a lot of risk here though. This company isn't like the other companies some are comparing it to. At the end of the day, it's all about market cap and whether or not you feel that even with the dillution, the company is worth that much or not. I personally feel it is.

we will see. I've watched stocks like this for years and I highly doubt that will happen. sounds to me like you are trying to get the stock at a better price. not a bad plan. good luck with it.

not sure if you're being sarcastic or not, but yes. It's a sign of dillution in the near future. Doesn't matter though. Stock is still undervalued and will enjoy a nice bump when the PR campaign hits.

I doubt they've actually dilluted yet. What you are seeing here is people panicing because of the increased A/S. It will go back up. I get in the first time I bought at .0009. Made a ton of money off it and have continually both added to my share count and put profits aside. At this point, I have more shares than I started with and I'm in on house money. If this panic continues and this drops to the .0008 level PIP was talking about, I won't hesitate to buy up again and do the same thing. When the PR campagin hits, the stock will jump (regardless of what it does today or tomorrow). IMO - watch for some crazy values and take advantage of them if you can. Then if you don't have the stomach for the long haul, sell some of it. Don't let PIP get to you. While he makes some valid points, he isn't telling the complete story.

If it does, I'll be buying a whole lot.

The question is: do you think the company is worth more than 4 times its current market cap? I do. It was a ridiculous value before. Now it's just a really good value.

I'm sure not selling at these levels. It would be foolish. Buy low (like now) and sell high. Trading 101

Not as much upside with the increased A/S, because that almost always means dillution is coming. However, the stock is still undervalued considering the revenue the company is bringing in and the new contracts it is landing. They clearly need the money to expand their operations. It's no secret that it costs money to grow in the early going. If they can't borrow all the money, then they need to sell more shares. However,they likely won't dump any shares until their PR campaign gets off the ground and they get their PPS up. It's common sense. That's short term.

Long term, you can expect the shares to be worth considerably more than they're valued at now. That's even with the dillution. You have to look at the market cap. Is that market cap realistic for this company? Not even close.

Bottom line: there will be chances for people to get out if they want to get out before the dump and for those who choose to hold long, they will make money as well. This isn't your typical pinkie.

when did it change? or where did you find it?

here we go

Wish I knew whose ask that was. He needs to smack that ask!

We'll make another run up to about .0028 and then fall back and close at around .0025. Long term, this stock has potential. But for it to hit a penny or more, we need more updated information or PR. I do think it's way undervalued though. IMO

I'll never understand why some people lower their bids as the stock is going up.

Raise the ask and the bid will follow......come on .0027s....raise your ask!

that's what I was hoping to hear

ask is going up

wow......it just keeps going. No bottom in sight.

Gotcha. Thanks for all the information guys. I was looking through all the numbers and it just didn't make sense.

Can someone give me a brief run down of how this stock got to this point? I was considering investing, but see a lot of negative sentiment and the stock keeps dropping like a rock--though I can't seem to figure out why. Shares outstanding doesn't appear to have changed in the last 6 months, yet I'm hearing a lot about how the stock is dilluted. If that's the case, where are these shares that are being dumped? They should show up somehwere. Or is everyone with me and unsure what is going on with the stock?

I'm new to the board. What exactly happened with this stock? The wheels appear to have come off. It was at $2 a year ago and now it's sub-penny? Outstanding shares have only increased by 25% since that time, so it doesn't appear to be all that diluted. No negative news except for the fact that the CEO was replaced for some reason. What exactly happened here? Why was the CEO replaced, etc?

Still here. Still holding. I've just been busy over the last week. I imagine a lot of this volume is coming from people buying and selling in the same day trying to make some money off of the volatility.

Best of luck. I'm still in. Thinking about buying more if there's really someone shorting and the price goes low enough. I still say it's a gamble, but my shares are almost paid for at this point.

That would be wonerful. We can only hope that's what he's up to.

I'm wondering if that's where that 1.25 million comes in. From the 8k:

"The parties each made customary representations and warranties in the merger agreement, which is subject to customary closing conditions, as well as a condition that we raise $1.25 million in new capital prior to closing (with a corresponding reduction in the amount of shares issuable pursuant to a convertible note held b our chief executive officer)." I'm no expert, but it appears the folks at GEM aren't happy that Solomon's 200,000,000+ shares will be diluting their shares and that they are asking for 1.25 million to offset this. Thoughts?

I couldn't agree more. It all comes down to market cap and with no financials to look at, we have no idea what this company is valued at. A 10 million dollar market cap would mean that the new shares would be worth .02. Current shares would be worth 1/3 of that. HTJ is correct in that "our" shares are only 2% of the new company, not 20%. GEM investors have 80%. CWDW investors have 20% (but Solomon himself has 18% of that 20%).

Market Cap is in essence what investors feel a company is worth. This is what will utlimately determine the price of the new stock. Take what you think market cap will be and then divide by the number of shares (around 450 million) and that will tell you PPS. PPS can be artificially inflated in the short term depending on PRs, pump and dumps, etc, but when a market cap far exceeds what a company is realistically worth, the PPS will eventually fall until the market cap is in line. A perfect example of this was with the ".com" bubble during the 90s. PPS went through the roof with the ".com" companies and market caps were completely unrealistic. In the end, though, the market couldn't maintain that and the bubble burst.

I think we're looking a a minimum of a 10 million dollar market cap, and depending on financials, PRs, etc, could be looking at 50-100 million dollar market cap. When it comes down to it though, we'll have to wait and see. A 100 million dollar market cap would put us at .075 for current shares. A $200 million dollar cap would be .15 and so on (for current shares).

Here's something to think about. Why did Solomon choose this company? His shares were worth more under the current structure. Even at .05, they are worth more than what they will likely be worth when this company first goes public. My opinion is that he didn't have a choice. He couldn't exercise the note and sell his shares until he did a R/M. If he tried to dump over 200,000,000 shares onto the market at once, PPS would have gone sub-penny overnight. Plus there wouldn't be nearly enough buyers to gobble them up. By doing the R/M, he gets less for the shares, but at least he can unload them.

To Hokie's point, however, he could have waited out and tried to get a company that would make his stock worth more. Why didn't he? Is it because he was running out of time? Or is it because he knows something about this company we don't and that this company really does produce "disruptive" technology? Again, only time will tell.

Hokie also make a good point about why GEM would pay a premium for a R/M with CWDW when they could have gone with a pink sheet stock for much cheaper. That doesn't really make a lot of sense either.

Net/Net: I don't feel great about things right now. I don't like the share structure and I do feel that we got the short end of the stick on this deal with 2% ownership in the new company. But there are enough unanswered questions for me to be willing to take a risk and stick around. But if you ask me if I'm making the right decision, I honestly couldn't tell you. It's a gamble at this point--at least until we get more information on GEM.

I've read through the filings over and over and I think I've figured it out. There's 34 million outstanding shares now. After a 3 to 1 reverse split, there's 11 million and some change. Now that's supposed to be 20% of the new company. Multiply that by 5 and that should be 100% of the shares. That's comes out to around 57 million shares. But according to the filing, the 80% going to GEM's investors is 351,691,756 shares. There will be 439,614,695 total post merger shares. That leaves around 88 million shares for us (the 20%). Now wait just a second, how did we get from 11 million for our 20% to 88 million? 77 million shares that are considered part of "our" 20% just appear out of thin air. Are those Solomon's convertible note being exercised into shares? I understand that shares are being diluted, but who is getting the extra 77 million diluted shares?

Now I did find this in the 10k:

"On August 27, 2008, we and Steven B. Solomon, our Chief Executive Officer, President and Chairman of the Board of Directors, entered into a Convertible Promissory Note (the "Note"). The Note represents advances of approximately $69,451 made by Mr. Solomon to us through the issue date of the Note. The Note bears interest at eight percent (8%) per year and is payable on August 27, 2010 or upon demand by Mr. Solomon. If the Note had been converted in full at December 31, 2009, Mr. Solomon would have received approximately 228,788,200 shares of the Company's common stock resulting in a beneficial ownership of 235,642,684 shares of the Company’s common stock by our CEO giving him potential control of the Company through the voting power over a majority of the shares of outstanding common stock."

If I divide 235 by 3 (3 to 1 reverse split), then comes out to right around 78. I'm thinking that's what's happening here. The note is getting converted to stock, then added to the current outstanding shares, then there's a 3 to 1 split, then they add 80% more shares.

I'm still not selling, but if this is the case, I don't see how this can be a good thing in the short term. I think we're going to have to bank on the new company being a good company when it comes down to it. Because I don't see these shares taking a big jump between now and 4/30. If we make a ton of money, it will be down the line after GEM proves itself as a company (IMO).

Oh...and that .35 isn't the PPS from what I can tell. It appears to be a percentage. The 3 to 1 reverse split probably isn't exactly 3 to 1. That would be .33. This is .35. So if you have 1000 shares, after the reverse split, I'm thinking this means you will have 1000 x .35 = 350 shares. The prices when it opens will be whatever people are willing to pay for it I think. We'll just have to wait and see.

I'm tempted, but I dont' want to have to sell any of my other investments to do it. I'm all tied up at the moment. But I'm definitely not selling. I can tell you that.

I think there's a lot of us who aren't selling, but are hesitant to buy more until we have more information. We may be missing out on a bargain here, but it's tough pulling the trigger and buying more at this point. In my case, it's a matter or capital. I can't buy more without selling something else, and I'm not willing to do that right now. Keep in mind that there are a lot of people on this board that mostly read posts and rarely actually post something (mostly because we're sitting back and trying to digest all of the DD you guys are posting). I can't speak for all of us, but I don't think everyone is selling. Only those who are trying to protect their profits. IMO