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Saturday, April 12, 2014 8:39:50 AM
What a mess MANU made this week. Charts and analysis...
Gone is the V bottom channel on the weekly, and with 150 million shares hitting the bids, everyone got filled that was bidding, imo.
Quote of the week!
"While several important goals were reached in 2013, our share price took a beating and our market value no longer reflects the actual current real value or the immense potential of the future. Clearly we have failed to communicate our potential or the strength of our team to the investment community. Redressing this and returning the company to a share price that is reflective of our real value is one of our key immediate priorities. In this context I want to address one issue that has repeatedly come in random conversations (Oh! how I love twitter!) with several of our shareholders -- dilution. I submit to you -- the owners of this company, that every dollar that is being raised is employed to make the company stronger. No one is buying houses or Ferraris with your money. By cleaning up Yellow we have ensured that almost all of the revenue from that brilliant movie will come in to the company and will pay for SG&A and for more movies. We also need to raise significant amounts of capital to build the Studioplex and to produce other films."
My only comment is.... This attempt to raise money by selling up to 5 billion shares in the open market, without being able to do private placements and sell restricted shares, has been a disaster for investors. If Manu and Jake Shapiro are determined to use cash in the market to pay expenses... well how much can they raise? Let's assume that the outstanding shares are now approaching 500 million shares, so they have 4.5 billion more shares to use. The market price will steadily decline as the outstanding share count climbs, and could even go as low as .001, or even lower, depending on how the dilution is handled.. But, let's suppose, they are able to get an average of .005 for 4.5 billion shares... That is 22.5 million dollars... That will build a couple of nice buildings for sure... Of course, then the company will be "out of shares", so the logical alternative will be to reverse split back up over .01, and then Manu and Jake can show us pics of the nice buildings he built with our money and that he needs the new shares to "finish the dream" or something.
My question is? Really? Why can't they find any partners to fund them via private placements? If the investment community is that scared of Jake Shapiro, then he should go...
Manu had the golden opportunity last summer with the $2.00 stock price to do private placements at say $1.00, and couldn't find maybe 20 investors to invest 1 million dollars each at $1.00/per share each to give him 20 million dollars to start construction?
That would have only been 20 million shares in dilution, not 5 billion shares, for basically the same cash...
He still should be able to find investors to take shares at .05 per share maybe and raise funds that way, vs paying supplies and contractors with shares, and going to the scammy convertible debenture finance companies, that will dump as fast as they can convert, any debt into the market as shares...
Oh well, that's my rant... I hope this works out for everyone, but unless we get some assurance that the new shares are not going to be rapidly unleashed into the market... I'm staying on the sidelines..
GLTA
Gone is the V bottom channel on the weekly, and with 150 million shares hitting the bids, everyone got filled that was bidding, imo.
Quote of the week!
"While several important goals were reached in 2013, our share price took a beating and our market value no longer reflects the actual current real value or the immense potential of the future. Clearly we have failed to communicate our potential or the strength of our team to the investment community. Redressing this and returning the company to a share price that is reflective of our real value is one of our key immediate priorities. In this context I want to address one issue that has repeatedly come in random conversations (Oh! how I love twitter!) with several of our shareholders -- dilution. I submit to you -- the owners of this company, that every dollar that is being raised is employed to make the company stronger. No one is buying houses or Ferraris with your money. By cleaning up Yellow we have ensured that almost all of the revenue from that brilliant movie will come in to the company and will pay for SG&A and for more movies. We also need to raise significant amounts of capital to build the Studioplex and to produce other films."
My only comment is.... This attempt to raise money by selling up to 5 billion shares in the open market, without being able to do private placements and sell restricted shares, has been a disaster for investors. If Manu and Jake Shapiro are determined to use cash in the market to pay expenses... well how much can they raise? Let's assume that the outstanding shares are now approaching 500 million shares, so they have 4.5 billion more shares to use. The market price will steadily decline as the outstanding share count climbs, and could even go as low as .001, or even lower, depending on how the dilution is handled.. But, let's suppose, they are able to get an average of .005 for 4.5 billion shares... That is 22.5 million dollars... That will build a couple of nice buildings for sure... Of course, then the company will be "out of shares", so the logical alternative will be to reverse split back up over .01, and then Manu and Jake can show us pics of the nice buildings he built with our money and that he needs the new shares to "finish the dream" or something.
My question is? Really? Why can't they find any partners to fund them via private placements? If the investment community is that scared of Jake Shapiro, then he should go...
Manu had the golden opportunity last summer with the $2.00 stock price to do private placements at say $1.00, and couldn't find maybe 20 investors to invest 1 million dollars each at $1.00/per share each to give him 20 million dollars to start construction?
That would have only been 20 million shares in dilution, not 5 billion shares, for basically the same cash...
He still should be able to find investors to take shares at .05 per share maybe and raise funds that way, vs paying supplies and contractors with shares, and going to the scammy convertible debenture finance companies, that will dump as fast as they can convert, any debt into the market as shares...
Oh well, that's my rant... I hope this works out for everyone, but unless we get some assurance that the new shares are not going to be rapidly unleashed into the market... I'm staying on the sidelines..
GLTA
When you are dead, you don't know that you are dead. It is difficult only for the others. It is the same when you are STUPID!
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