Intellicell Biosciences Inc (fka SVFC)

[Y_Razz]

Here's a good description of "dilution" with regards to OTC.

investorshub.advfn.com/Triple-000-and-Sub-penny-Chart-Plays-23986/

Dilution is when the company moves shares from the AS (authorized shares) to the OS (outstanding shares) or tradeable inventory, for cash investments in the company.

This means there are more shares at the same market price and reduces the size of the EPS.
It doesn't reduce the price or value of the stock.
But many pennylanders think it does.


Dilution doesn't change price, it changes EPS. Creating loss in company value, not stock value.

Hardly 1 in a 1000 OTC companies have an EPS to effect.
So, dilution can't effect their company value in the first place.
Whats the value of no earnings, thus no EPS.

But, the value of more cash to a startup is huge!
Cash gives them the ability to attempt to grow.
Without the cash it can't.
So logic says, the retail herd should be happy about dilution.
After all, they want the comapny to grow don't they.

On the OTC, "dilution" is the best news one can hear !


Price "Pull-Down"

where the price falls HUGE over a relatively short period of time.

All "you" need to remember, is that with ALL "pull-downs", the "accumulation" starts.
This is just the first step!

As with all of these, it's early before any play can be expected. A "pop", and possible "double bottom", then a basing of volume to within the OTC volume range for "big guy" plays, then a breakout and play, if anything happens at all.

Just look at your stock, and read some of the old saved posts in the sticky post area.
Price pull downs are OTC game stock. They hover higher for months and months, with NO retail interest or volume.

The insiders "pull the price down", for the funding of their operations,
by increasing the "shares outstanding" and "authorized shares",

and when the price of the stock, reaches the price level where the "VC"s want to "Buy",
the stock finally bottoms, and you then see the accumulation.

Most every stock "pennylanders" like these types of stocks.
There is another term for trading these OTC sub & Micro stocks.

"Bottom feeder" stocks.

The accumulation is "bottom feeders" moving in.


Not only does it give the company a chance at growth, it doesn't effect their EPS value one bit.
They have no EPS to effect.
Plus, every time VCs get there hands on large amounts of shares,
they buy a run, and we can trade for profits !

So, "dilution" is a win for the company, a win for the Venture capital firm,
and a win for the educated pennyland trader, on the OTC.




Funding

Remember, "start-up companies"have no business except "selling stock".

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=75262048


One of the easiest ways, for a "start-up company" that trades on the OTC,
to gain the attention it wants, is to get "promoted".

In many cases, the compensation to the " Promoter " is "in shares".

To be more precise, the shares are "restricted shares" by the company,
and "free trading shares" from an undisclosed third party.

In the "start-up stage", the Promotion will give the company some publicity,
however, it may not lead to the desired results, due to the "share-based compensation".

That's not necessarily a bad decision on the part of the company's management.
They just may not have the option to pay in cash.

The thing about "promotions", is that they tend to work better, when "paid with cash".