Gawk Inc. (GAWK)

[ArnoldV]

I called the CEO today and spoke with him personally. His explanation sounded quite reasonable to me. Some of the "investor funds" that have loaned money to the company are converting their debt owed by the company to company shares. However, one of the "investor funds" is not interested and as such they are dumping the stock they converted on the open market to get their money out. And my review of the 2015/2016 financials (although I am not an accountant) seems to indicate to me that this could go on for another six to twelve months.

I do not believe the management of the company wants to see the shares at the price they are nor do I believe a majority of the "investor funds" want to see the low stock price either. Certainly the shareholders don't. However, until those "investor funds" stop dumping their shares the dilution will continue from what I can see. The CEO stated that he is not pulling shares from the Treasury to raise money at this time.

I also am in this for the long term. I do not see this as a day trade. And I am only investing a max of $2k in this one company so for me its better than gambling at the casino or buying a lottery ticket.

If you are interested give the CEO a call. He seemed approachable and reasonable to me. But to be sure one of two things will happen - the company will move to a positive cash flow and the stock will reflect the companies true valuation or the company will not go positive cash flow and continue to dilute the value of the stock and people will stop buying it and it will die. If the latter happens no serious "investor funds" will lend the company money and non of the existing ones will ever get their money back.