SunWorks Inc (SUNWQ)

[drugmanrx]

I agree and disagree.

I agree "this is a flipper if you manage to carefully time upside that only lasts"

Where I disagree, yes you are correct JN is building this company though acquisitions purchased by using a high rate of dilution presently. But the reality is going back 1 1/2 years ago what other options did he have to do so. We are not talking about a well established high revenue producing company that has the resources to grow without dilution yet.

1 1/2 years ago JN purchased a company, with nothing other than penny stock, that was only doing 7 million dollars a year in total sales. Even after that purchase it did not leave JN a lot of profit to use in purchasing additional acquisitions.

Now a little over a year and half later sales goes from zero to a projected 100 million plus for 2016, from a company in the red to a company in the black.

Has that dilution hurt the long holder stock value short term and will it probably hurt it in the near future, absolutely.

The important thing to realize there are two types of dilution, one as you say is toxic (shareholder gets no extra value out of it), that type is not occurring here. The other is positive (share holder gets equal of greater value for dilutes shares), that is occurring here.

Example what was the cost in dilution for the Sunworks acquisition? Separating Sunworks, from the other two acquisitions what would be Sunworks alone be worth today?

Eventually, as the company organically grows, JN will not need dilution to purchase other acquisitions.

Then the long holder should see a significant rise in stock price, until then it is a flippers game.