DNA Brands Inc (DNAX)

[Ed the Trader]

"I'm with you Ed, I'm here for potential longer terms gains. If the OS is in fact 4 billion, is a reverse split likely to happen?

A reverse split occurs for only one reason, and that is that the company needs additional cash from the sale of stock, but no one is buying at the current PPS.

So far, at least some DNAX has changed hands almost every day. Yes, there have been a handful of zero volume days for DNAX this year but those usually occur on days when the overall market volume was low for whatever reason.

If everyone freaks because the O/S is over 4 billion, and as a result, everyone stops buying, then it forces the hand of DNA management to do a reverse split.

If people continue to support the company by loading shares, there is no need for them to do a reverse split. As long as people continue buying shares, they can even rise the A/S higher than 6 billion if the O/S gets close to the A/S and DNA management has not yet raised enough funds to move forward with their future plans.

Note that DNA management raised the A/S to its current 6 billion last summer when the O/S was still below one billion. I think that back then, they had formulated a plan to recover the company from the sabotage infected by the former CEO, and they are patiently and methodically executing that plan. I think that as part of that plan, DNA management calculated that they would need to sell the share structure up to about 6 billion so the raised the A/S to that point. The fact that the O/S is higher than some believe simply suggests to me that DNA management is closer to completing the phase of their recovery plan that involves acquisition of additional funding through the sale of new shares.

The sooner they complete that phase of the plan, the sooner that they begin the execution of the next phase of the recovery plan, whatever that is.

If DNA management has been using the proceeds for the sale of new shares to pay off existing debt, then the next phase of the recovery plan would likely be qualification for and acquisition of new debt to fund the new product that they wish to launch. That new phase would also likely include actually beginning that clinical study for the new product. When that begins, I expect that DNA management will provide us with news of its occurance.

If I saw that DNA management seemed to be switching gears alot (or at all), I would be worried that they are just trying to scam shareholders. I don't see that.

If I saw that DNA management involved in promotions to try to pump the PPS, I would be worried that they are just trying to scam shareholders. I don't see that.

If I saw that DNA management was releasing fluff PRs to use smoke and mirrors in an attempt to con people into buying more shares, I would be worried that they are just trying to scam shareholders. I don't see that.

Instead, I see a management team that only releases news when they have actual, real news to report.

If we believe them, DNA management themselves have well into 6 figures (maybe 7 figures collectively) of their own personal cash sunk into this business. If they executed a reverse split, they themselves also lose a huge amount of their personal money.

For that reason, I believe DNA management will do everything possible to avoid a reverse split, and I believe that they legitimately wish to save the business. If I had not seen, purchased and consumed their products myself, I would not be giving them so much trust... and slack.

Make no mistake that acquisition of DNAX is a HIGH risk proposition. Risking more than you can afford to lose is STUPID... but I think that risking what you can afford to lose gives you access to a spin of the roulette wheel that could pay off very big.