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Re: BigAlBalbosci post# 3964

Saturday, 04/25/2015 4:55:42 PM

Saturday, April 25, 2015 4:55:42 PM

Post# of 8579
Even if they pay in shares I am really not very worried about it. What they owe Typenex is a few hundred K. The loan was 10 tranches but as of January they had only used 2 tranches. By now maybe they have used 3 or 4. That would be modest dilution, not massive. VHUB's market cap is the cheapest in the sector. The market cap should easily swallow modest dilution. Current cap is 1.5, if modest dilution increased outstanding shares even 2 fold then the market cap would be 3 million. It would then be the second cheapest in the entire sector. By most metrics VHUB is in the upper tier of companies in this sector. Whether they dilute or not with the pps as is VHUB will either remain the cheapest of the sector or the second cheapest. The company is undervalued by the market. If dilution comes then the company will still be undervalued by the market at this pps. Considering the company and it's standing against it's peers I feel people over reacted greatly to dilution fears. I am betting that the over reaction gets rectified as people come to realize that if dilution comes it will not be nearly as severe as they would believe it to be. That is my bet. I have looked into it a lot and have done the math. The market right now seems to think dilution would be severe. The market is betting on massive dilution as that is what the current market cap reflects. I personally don't see it as it does not add up. I will bet on modest dilution and not massive and in the end I will most likely be correct. At that time the market will then catch up to my analysis.