Thursday, August 10, 2006 10:46:00 AM
I'm not saying that and I don't believe JF will ever say that. What I'm saying is, based on their financials and upcoming expenses there should be no reason to dilute further for a good 12 months.
Now if an acquisition comes up or they are going to need additional cash for some new project (or advertising) then dilution will be needed.
In my opinion, the cash is being managed very carefully and I believe they want to keep an adequate balance of cash to show all (CC, shareholders and prospective retailers) that they will be around for 24 months at least. If they never diluted and only had $100K of cash I think that would be a problem. Also, they could not say they have "adequate cash to last 24 months" like they do in the SEC filings.
My 2 cents
Now if an acquisition comes up or they are going to need additional cash for some new project (or advertising) then dilution will be needed.
In my opinion, the cash is being managed very carefully and I believe they want to keep an adequate balance of cash to show all (CC, shareholders and prospective retailers) that they will be around for 24 months at least. If they never diluted and only had $100K of cash I think that would be a problem. Also, they could not say they have "adequate cash to last 24 months" like they do in the SEC filings.
My 2 cents
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