In one sense, you may be partially right, but success will NOT come down to dilution. ALL companies suffer some form of dilution along the way, especially when it has little capital resources to pay people and when raising money. But dilution is a factor most day traders look at because they think its a sign of future sufferance. Its a terrible metric that clouds what could become in a matter of months. They look at dilution because they are short-term, not longs. So let's really take a good look at dilution from the perspective of sufferance.
Not a single 144 Form filed in a year. NONE
Not a single Form 4 indicating sales. NONE
Form 4's indicating purchases and stock acquisitions.
10M shares converted into common, but ALL subject to 12 months LOCK UP.
Company has settled and taken out several convertible loans over the last 5 months.
Bonuses and pay issued in stock (worthless because they can't sell, and agreed not to)
Stock conversions........maybe a total of 90K shares since February - but leaked slowly into market
Any more stock issued by company (increases O/S and are all restricted for at least 6 months)]
Management is always the one to blame when traders feel there will be dilution because that assumes management is ready to jump in, sell, and screw the traders. Point to ONE FACT that shows this management team is about to sell.
So, when does dilution effect you? WHEN THAT STOCK IS SOLD! It doesn't matter if you own 20,000 shares, and the CEO owns 1,000,000 shares. Why, because your shares are worth $1.25 a share, and so are hers. If she gave all that stock back to the company, your stock would still be worth $1.25 a share, yet your market cap would go down. Your shares are your shares, and a company issuing more stock ONLY effects your holdings IF THEY SELL and that selling DRIVES THE PRICE DOWN.
So dilution here is more of a psychological myth here. It creates panic, and then it misdirects the progress of the company to potential new shareholders.
Now let's talk about raising money.......there will be some form of major dilution (don't be scared) at some point, when "investors" (those who put money directly into the company) will eventually be rewarded with stock based on some instrument. The real measure is AT WHAT PRICE would a deal be done at. If its above market, great, you just got a little appreciation above market, if its at a discount, doesn't mean that will be the new market price.
So now you have to consider support and when. I see a few different levels...the company needs to start generating some support now in order to slowly improve the PPS, to get it within reason so it closes in on that NASDAQ listing requirement. Not much should do it...last time 30K shares moved this $5.00 in a few days. I think the MM's smartened up and were caught by surprise last time. This time it will take more than 30K shares. Maybe 150K to move it that far up again, and thats still NOT a lot of shares. Will securing capital bring with it support to the company's market? If so, how much, where, when, how and of course........when can I sell as quickly as possible to make a profit. Again, a long will go through 1, if not 2 major funding cycles before getting out.
I am SICK of hearing everyone crying dilution - with 5,000 shares trading a day at slightly above a dollar - there is NO MARKET yet for this stock, no volume, dilution, etc..... is a waste to discuss until the company establishes a market for its stock. Is it time to get in now......... you decide.
And the lawsuit, CEO bonuses, quarterly pay (thats accruing) is nothing but a DISTRACTION from the signs the company is progressing. We may not see it yet, but ALL the signs are there if you know where to look.
Take a look at STRT (Strattec) for example. A NASDAQ Security company in the automotive industry for decades, trading at $57.00 a share, yet trading volume comparable to RXSF. STRT has hundreds of millions in stable revenues, but basically has NO MARKET for its stock. Its about awareness. They lack public market awareness, so it doesn't matter how much revenue you have, how big your float is, or what the CEO and management are getting paid, the market reacts to new and good things. And unlike STRT, RXSF is new and good.
This is why I always said, any analysis looking into the pockets of the insiders in this company is a waste because they haven't sold in years, and agreed to lock up for years. Looking at dilution is a fallacy, other than the two notes that converted and are slowly leaking into the market. If this were trading 10,000 shares a day, you wouldn't even point that out.
So how do you build awareness. You have two choices.........PUMP & DUMP OTC scams.....and then you can kiss ANY national exchange bye-bye, or you can get in front of guys who take a LONG hard look at the company, its products, its markets, understand the capital needs, and the company develops its market slowly. S L O W L Y. Then those guys help develop a LONG TERM plan on growing the several different areas in the business and the capital markets, so THEY can make money.....which translates into WE MAKE MONEY.
There is no magic PR that will change anything until people are watching this company. I wouldn't waste a single PR until the eyes or on this. Vedderman is right, the last several PR's allowed selling with little to no support, and you wonder why the CEO is silent. I think she is waiting for the right time, and is getting great guidance by her IR form ad well as bankers.
