After reading some of the posts today I'm really just baffled how people choose to ignore the facts. This stock is performing poorly for one reason... DILUTION!!!!!! I've read plenty of posts now over the last few months where it's been explained that dilution is at the source of this stocks problems, but everyone seems to turn a blind eye to it and then post on here wondering why it's not at .07, .08 or even .05 for that matter.
Someone just posted today that the stock was at .07 back in 2012 so they believe it can get there again. That's great, but that's like comparing apples to oranges though. There are roughly 200 MILLION more shares outstanding today than when it previously hit that price. The companies market value today at .02 is higher than it was when trading at .08 back in 2012 because of how many more shares are out there today.
Yes, the company has a new CEO. Yes, it's making meaningful partnerships. It IS moving in the right direction, but it's still struggling. Net profits are weak, not enough to continue operations on, so in order to get the money needed to keep this thing going, they are putting more share out into the market. All of this info is in the Q reports if you read through them. There could still be a lot of dilution ahead, according to the Quarter report they are authorized 500 millions shares, and they are sitting in the mid 200 millions range right now. That's up from 39.2 million back as recently as March of 2013. That right there is the reason for the stocks poor performance, and nothing else. I don't care how much good news comes out, this thing isn't making a big run up until the dilution stops, which seems like it will be when they've released all 500 millions shares.
My hope is that they can keep this thing on life support, by the time they run out of shares to sell to raise funding, they will have a solid business in place and can survive and grow on sales and revenue. I can see this thing going either way in the long run, only time will tell i suppose.
AI
