SOUM. Current O/S WILL be hit by the 1/1000 R/S. From a company perspective, it makes sense to sell into a R/S. Easy money and current holders have already taken the hit (on paper, big loss).
BUT...this money, if used properly and "stockpiled" for use in a new capital venture that improves the bottom line, post split pps COULD be maintained and possibly rise...bouncing off of our current lows. In other words, if the pps holds at the .0003 level now, post pps would be $.30 pps. Holding that pps AND improving the company worth from then on out, we could see no further drop from our current worth in holding SOUM shares.
A BIG IF. Very possible though, IF the Malta deal blossoms and WG acquires new contracts. There still seems to be value here.
Sure, investors have in fact taken a big hit by the company flooding the market with new shares. A total surprise from what we all were expecting given recent "tweets" and acquiring WG. Thinking rationally, I believe that the value is still here. Maintaining the post split pps value should be a reasonable expectation...although the trust of even that happening is on shaky ground given the company's current treatment of loyal investors.
Still, I would not be here in the first place if I was not willing to take the risk of losing all of my initial investment...SOUM does, you know, reside in the land of pink and risk is as real as breathing air.
I knew that going in. I have paid the price for entering too early and not fully understanding the potential for 'complications'. Yet I remain. My loss, thus far, is on paper.
question is now, what to do from here on out?
Believe it or not, I will remain AND buy even more to average my pps down...because I do believe SOUM has a positive side. It will show that side more further down the road. Potential growth is not a fantasy...it is however tempered by mismanagement as of this date and even disrespect towards all investors that have taken the hit thus far. Yet I can still see recovery. I have been on this side of the coin, I want to be on the other side as well. To do that, I must play.
