Food for thought, I asked someone whom i respect greatly about the issue with the A/S and this company etc. He replied...
As for the increase in a/s, this would indicate to me they are planning a secondary offering which would imply that they see a need to raise capital and are running out of authorized shares to issue. They are showing pretty good liquidity, conceivably enough to get through at least one more lean year, but if this deal with Circuit City doesn’t pan out, I’d say they’re in trouble. (Pred edit: IF it doesn't pan out)
The poison pill protection issue is probably already addressed in their articles in incorporation. Nobody in their right minds leaves this out when incorporating. If this is the case, then the increase in authorized and unissued stock is of little if any relevance. Sure, they could try and raise capital for no other reason than to make them unattractive as a target, but the market would reject it without a viable plan for the use of the proceeds (it also would be a fraudulent activity). My belief is they have simply run out of available shares (they only have about 700k shares left, at .0123 that’s only $8,600).
He also mentioned this to me before doing research on the company:
I would caution you that as the news on your stock is on the street, there may not be much more short-term upside to the stock. That’s typically how things perform without doing a lot of research.
So in other words people...if CC DOES pan out we're in for a long term UP TREND. I as well as many people here who were owners of this stock as of friday at the close were expecting a 1000% gain in a matter of days after the CC news came out. It might have been possible but this stock has more long term potential and if you dont have the patience to wait then i'm sorry you're going to miss out on a nice steady uptrend (of course this "steady uptrend" will have plenty of outrageous days resulting in plenty of emotions to come!)
All of this is IMO and IHO (In his opinion).
Pred
BTW, timing of latest news was pretty good, JF is smarter than people think...
