SunWorks Inc (SUNWQ)

[SandridgeEnergy]

This point is correct in regards to Nelson and the management, and probably explains why Nelson would dump 100% of his shares. But the shares being sold now aren't likely from them.

IMHO they dump their shares because they know that those shares will be replaced as low milestones incentives will be met for the foresee able future.

While you make the argument that you are still paying for it every time shares convert and obliterate the stock price, you fail to take into consideration that the original acquisition is also increasing in value organically.

Eventually, all shares issues used to pay for the acquisition will be exercised while the acquisition itself will continue to grow in value long after those shares are gone.

Under this logic there is no upper limit on the cost that could be paid for any asset with any earnings or growth at all. Under state laws interest rates in some states above 12 to 15 percent can be considered usurious and are illegal.

The financial genius Nelson forced shareholders to pay through these notes effective interest rates of over 8000% (assuming a $3 share price). When you pay 8000% to borrow money, somebody is losing money, to say otherwise is hopelessly naive. In this case it's the common shareholders who are getting screwed and the people who own those notes (who are close to JN) who are getting rich.