It seems like you guys got screwed by the company on the RS. But not because "companies that does RS always goes down", which seem to be consensus on many iHub message boards for some reason.
From 2015 Q1 report:
Weighted average number of common shares outstanding:
-Basic 2,065,564 1,998,049
-Fully diluted 5,439,447 1,998,049
From the DEC 14C:
Pre-Reverse Stock Split
Authorized Shares of Common Stock Issued Shares Authorized but Unissued
100,000,000 52,225,394 47,774,606
Post-Reverse Stock Split
Authorized Shares Issued Shares Authorized but Unissued
100,000,000 2,089,016 97,910,984
They did not reduce the authorized shares at all, even though they made a 1:25 RS. So they ended up with the opportunity to dilute the shit out of the company, I'm sorry to say. They couldn't have diluted this much without it. I didn't read all the details in the FY2014 or the latest Q1, but that is the impression I got from just looking through it.
Do you have any thoughts about the dilution?
I got interested in looking into this company since Tony posted about it over at China Unlimited after the FY2014, but I'm not sure after seeing this. Since the latest drop in PPS I got interested again. Do you guys mind posting some summary of your DD? I didn't find any stickies and going through the posts (the latest 50) didn't give much. Otherwise I guess I'll have to start digging on my own, would be nice to have some notes to compare and see if I agree with while doing it though.
