Debunking the MYTHS's (MY OPINION) that 2 BILLION shares somehow = a "partner" or "mezzanine" financing, or "a good thing" or "imminent success" or blah, blah, blah.
2 BILLION shares on a 3 penny stock is going to CRUSH it further close to zero, IMO. And all historic proof will bear that out, again IMO. Dilution, massive dilution, nearly always causes the common share price to head lower, rarely ever higher, unless the company has significant sales, can buy other companies with the shares sold (growth by capital raising/acquisitions), thus produce more earnings and profits- in a rapid fashion, in the near future with the diluted shares- NONE of which I see happening in this case IMHO only.
The total shares outstanding in 3/31/2010 10-K filing:
as of February 28, 2010 was 20,489,444. (20 MILLION SHARES TOTAL)
As of this proxy filing today, April 17th, 2014:
463,274,232 common shares; (463 MILLION SHARES)
And remember- there was only about 190 MILLION shares outstanding as of 1 yr ago, at which point they blew through that limit and upped (had to amend corporate rules, whatever to allow the increase) upped the "allowed" amount to about 950 MILLION from a previous 200 million share limit.
So, in just the past yr (2013) they blew through over 200 MILLION shares and ended with $46K total cash in the bank (Dec 31st, 2013 10-K). And, just since this most recent 10-K, they already went from 420 MILLION or so , to now 463 MILLION, that is how fast the massive dilution is occurring.
So- given that since 2010, they went from about 20 MILLION shares out, to today, now about 460 MILLION shares out- did ANY of the following "claims" being made occur:
1) Did it cause a "partnership" to "materialize"? NO.
2) Did it = some "mezzanine financing or similar? NO. In fact it's been endless, "vulture" and other "floorless convertible" so called "financing", and every dilutive "financing" known being used clear back to that 2010 period IMO.
3) WHAT has all this dilution and HIGHLY DILUTIVE "financing" done to the share price? (someone posted, "What's the big deal, IF it leads to the Mirror trial being enrolled" or blah, blah, blah?)
Well, the share price in 2010 was about 60 cents a share to as high as 90 cents a share- in Jan 2010.
Today, after being diluted by over 400 MILLION SHARES, the share price stands at about 3 CENTS a share, and recently as low as 1 PENNY A SHARE. THAT is what massive "dilution" does to the common share holder and the share price.
Lets give a few examples of what a 2 BILLION share company typically looks like:
FACEBOOK (one of he most successful IPO's in stock market history)
Shares outstanding 2.5 BILLION, market cap $150 BILLION, cash $11 BILLION, operating cash flow- over $4 BILLION.
BAXTER- an enormously profitable and successful med, bio-tech company. Shares outstanding 540 MILLION. Yep, will have less shares out than ole BHRT soon. Baxter market cap $40 BILLION dollars. Operating cash flow- over $3 BILLION dollars on sales of $15 billion, pays great dividend.
Chevron- one of the most well run, successful, profitable OIL MAJOR companies on PLANET EARTH. Share outstanding, 2.1 BILLION. Market cap $236 BILLION on revenues of $211 BILLION annually. Operating cash flow $35 BILLION dollars, pays rock solid dividends. THAT is a 2 BILLION shares outstanding company- at about $123.00 per share, not 3 PENNIES.
EVERY EVENT, EVERY "PR", no matter what it says- gets the same old, broken record IMO, reply of "PARTNERSHIP" or "BIG FINANCING" "must" be coming "soon" and blah, blah, blah. FOUR YEARS- and it has never happened yet. Including the Northstar "claim" that they were going to go out and "raise" supposedly $20 MILLION in a "private placement"- and I can list many other "PR's" that made "claims" of "term sheets" being "signed" and "imminent" financing that "probably" was "about" to happen and on and on and on.
So, why would upping the shares now, to an incredible 2 BILLION shares being allocated, on a 3 PENNY stock = any of these "claims" being made about a "partner" or "financing" (especially mezzanine- which I'd put bank on it, the one making the claim doesn't even know what, or how a "mezzanine" financing deal works or is constructed).
WHY would any of these vast, hype "claims" suddenly be true now? Oh, and the "claim" was made that the 950 allocated now would "easily" cover the financing deals and convertibles and all, already in place, thus, it MUST = a "partnership"?? Huh? How can anyone but an insider possibly know that? They're already at 460 million shares. They put out 50 MILLION warrants we know of. They did numerous "floorless convertible" share deals in 2013- we don't have a clue how many shares will be needed if they are all converted. Perhaps, they, BHRT knows that in about say, 4 or 6 months perhaps, they'll be blowing through say 700 million shares outstanding for example and rapidly approaching that 950 million mark.
So, what do they do- they just pull a pie in the sky number out of the air, 2 BILLION SHARES, and figure that should cover um, from getting backed up against the share limit- for as long as they can keep this gig alive and going. That's it IMO.
NOTHING from the past, IMO, indicates this shows ANY "deal" or "partner" or anything else as being "imminent". It tells me- just expect more share crushing dilutive financing "deals" with the likes of ASHER and similar- and who knows what to the "guarantors" of that loan that needed to be renewed, and insiders getting shares, and more warrants being handed out and all the rest. THAT is all it means IMO. Anything else is just the typical, heard it a 100 times before IMO, hype and speculation and same old, same old conjecture that's been repeated ad nauseum, for years.
That's my opinions and mine only. No recommendation to buy, sell or hold this stock or any other. Doesn't imply or claim anything about the company other than my own 2 cent opinions and thoughts and musings- from watching the stock and looking at its past performance and reading their SEC documents, etc. Do your own due diligence- and do what ever you want. Like it, love it, buy, sell- whatever.
Oh, and happy trading and good luck and $BHRT (the code symbol I guess, eh?)
