Sack Lunch Productions Inc (SAKL)

[Blizzld]

You are smart to be cautious here. I could bring a lot of buying to this stock but that preferred C stock convertible into so much common stock is worrisome. It is unusual even in small OTC companies. The problem is not the 6 million or so shares that just popped out but the prospect that 6 million more can come at any time about 10 more times . I know that is not what is intended and I truly think management is trying to turn around a sloppy capital structure . I was impressed they responded clearly and accurately to my questions on this matter. What I think they should do is lock up 90% of that stock for a year or 18 months and let this thing play out and move up along with all the positive press. The higher the price, the less dilution which helps everyone. This is because those Preferred c shares are convertible into dollar amounts of stock.

Example. Say 1 share is convertible into $5 of stock. At current prices that is say 40 shares. However if the stock is 5 dollars it is only 1 share. If its 2.50 its only 2 shares. This makes a huge difference , so they should leave some open but lock up the rest. Any movement in that direction would bring in tons of investors.

I also think they made the right move buying up the biggest franchisee.

Lots of good stuff here and in a business model I think is the wave of the future.

good luck to everyone!