US Stem Cell Inc (USRM)

[Dragon Lady]

BMAK just slid back into 1st position on the Ask w/ a 10K share block at .0095.


http://www.otcmarkets.com/stock/BHRT/quote

That tells me, IMO, that it's not going much above that today. BMAK tends to set the day's "cap" price from what I've seen now for about a month of watching the Level II on this one.

Looks like dilution shares and the MM's associated with those 10's of millions of dilution shares are driving this ship and the share price, at least for now, IMO.

Always said, dilution and lots of it, especially when in combo with massive use of "convertible debt" (aka floorless, toxic debt deals) has to have consequences sooner or later (negative to the common share price IMO)- I just don't see how it can't and here's what the SEC themselves says about it too:

http://www.sec.gov/answers/convertibles.htm

From THEE SEC:

"By contrast, in less conventional convertible security financings, the conversion ratio may be based on fluctuating market prices to determine the number of shares of common stock to be issued on conversion. A market price based conversion formula protects the holders of the convertibles against price declines, while subjecting both the company and the holders of its common stock to certain risks. Because a market price based conversion formula can lead to dramatic stock price reductions and corresponding negative effects on both the company and its shareholders, convertible security financings with market price based conversion ratios have colloquially been called "floorless", "toxic," "death spiral," and "ratchet" convertibles.

Both investors and companies should understand that market price based convertible security deals can affect the company and possibly lower the value of its securities. Here's how these deals tend to work and the risks they pose......"