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Re: Gsdubb post# 10804

Tuesday, 08/05/2014 4:18:04 PM

Tuesday, August 05, 2014 4:18:04 PM

Post# of 106844
"That makes nonsense at all."?? (no sense)- it makes all the sense in the world.

Take the latest 10-Q filing, PAGE 25 as an example:

In July 2014, the Company issued an aggregate of 2,640,625 shares of its common stock in settlement of notes payable of $32,500."

That's just ONE tiny example and it's 2.6 MILLION shares, "issued" to "someone": there's lines and lines just like it in this 10-Q, the last 10-Q, the 10-K before that. Do the math on those shares "issued" which are now "common shares" out there that can be dumped/sold for a profit.

a) $32,500/ 2,640,625 = .012
That means there's now 2.6 MILLION shares that are "out there" to be sold if wanted, and the person got um for about 1 cent ea (.012).

What happens to the share price on a thinly traded micro cap when over 2 million shares hit the sell side? If that person got those shares at 1 cent or so, they can make 2.5 to 3 times their money if they can sell um in the 2.5 cent to 3 cent range, turning that $32,500 into $75K or maybe close to $100K.

Does one really think they're gonna hold long term, or will they "cash out" and make an easy double or triple on their money? I know what I think.

That's dilution and its reality IMO. Makes total sense.