PPJ Healthcare Enterprises Inc (PPJE)

[Ed the Trader]

PROOF!! Stating Dilution without Proof is an Opinion Only.
Assuming Dilution is just retarded without proof of such actions.
Do you know the deal made between the Lender/financier? NO!
Only the lender/financier and Ms.Basu know what deal is made.

That is the problem. The shareholders have been left in the dark, so prudent behavior leaves us with no choice but to act as if the value of the new funding is resulting directly in dilution (multiplied by some discount factor of the shares given to the Lender/financier).

If there was some indication of increased (or any) business that would drive justification for increased share price, no one would mind the dilution as the long term increased share price would compensate shareholders. However, we have been left in the dark regarding the new line of business involving the clinic analyzer partnership. We have also been left in the dark regarding any real information about the new Houston pain management client.

If there was some indication that the lawsuit would EVER be resolved with a decent probability of PPJ acquiring sizable compensation for its previous losses that would drive justification for increased share price, no one would mind the dilution as the increased share price would compensate shareholders. However, all we see there are delays again and again.

When asked earlier about what restrictions are going to be placed on shares given to PPJ’s new financier, Chandana Basu stated that she THINKS those shares are restricted for one year.

If she had nothing to hide, she should have verified this reality, instead of responding with what she thinks, and she would have reported that reality to shareholders… in a press release.

The fact that she could not say with certainty what the restrictions are either means that she did not want to actually state the facts (and instead, she intentionally blurred the facts with the phrase “I think”) or she does not care enough about shareholders to KNOW what impact her business decisions are having on shareholders.

I can forgive that she might not remember such a detail from memory; I cannot forgive that she did not think it important enough to verify before responding to the e-mail query from the shareholder who wrote to her.

PPJE is an OTC Pink Sheet stock, and that means that we cannot trust ANY filing that PPJ files because it has not been independently verified. Therefore, prudent logic dictates that if Chandana Basu wants shareholders to believe her company’s story enough to support it long term, then she must provide enough information to shareholders such that they may develop some confidence level that the story is accurate. That means that she must provide shareholders with enough information to verify that story to some reasonable degree.

Without such verification, prudence suggests that a shareholder should expect the worse case scenario, which would be dilution of share price to $0.0001 through dumping of discounted shares provided to PPJ’s new financier in combination with no news which would justify increased share price. Of course, this would be followed by a reverse split to basically wipe out existing shareholder’s positions so that PPJ can continue to gain new funding later.

I hope that Chandana Basu is aware that the new OTC rules will not allow her to reverse split her company into the OTCQB exchange (where her earlier press release indicated that she wishes to take PPJ). If a company does not maintain a stock price of $0.01 or higher, that company is dropped from the OTCQB exchange. PPJ will have to drive the stock price to over one penny, and keep it there on merit of the company’s performance (because the price gain from a reverse split is very temporary without merit to keep it high) if she wants to move PPJE to the OTCQB exchange.

(Just corrected my mistake regarding OTCQX versus OTCQB)

References:
http://www.otcmarkets.com/content/doc/otcqb-fact-sheet.pdf
http://ih.advfn.com/p.php?pid=nmona&article=61192974