If those hypothetical numbers made sense, like we addressed many times before, then maybe it would happen.
But they don't. You cannot say if certain investments are made, that the pps will automatically go up and is guaranteed to go up a certain amount. This stock has gone up and it's gone down on news.
Nothing about a penny stock is guaranteed as you presented it. Likely? That's a matter of opinion. But not as guaranteed as presented. It went up with the news about Gay but then tanked again. If the news was so solid, the stock should have sustained the gains it made. But this is a penny stock and fundamentals are often an afterthought.
Plus, your scenarios are based on the fact that because someone has a lot of money, they are more reckless with that money (yes, this is a very high risk project). The opposite is true. I know people in my network who have a very high net worth and they don't throw money around just because they have it. Every business decision is based on the numbers of the deal, not how much these people are worth. Their net worth is irrelevant when analyzing a deal. I've worked with my VC friend for years, I see how he analyzes deals I've been involved in and those I've just watched him work.
Saying "this isn't much money to someone who is a millionaire/billionaire" just isn't accurate. They invest money, not waste it (Yes, losing money is wasting money).
Plus, investing more money in an unknown, two story entity than it would cost to open some McDonald's franchises is ridiculous. It's not going to happen.
There are two main stumbling blocks here:
1) GIGL's failure to expand past two/three stores for years.
2) Their unstable bottom line numbers. (Which is also what the mall companies said).
This is a "turn around project" as described by a person who owns Chuck E. Cheese franchises told me. That's an entirely different approach than just investing in a company. It also requires more of a time and resource commitment and has a different risk profile.
Those are the main reasons no one has jumped in under GIGL's terms.
If Reed's/Raptor is looking for a project of this nature, then it might be a good fit for them. But there's a reason that investor's who can afford this project aren't rushing in and why switching job titles with Gay and Parsi doesn't mean a thing if Parsi is still the only full-time exec and Gay remains in the same time commitment as part-time.
In fact, when I told my VC friend about that, his response was "So? Nothing's changed." He was right. GIGL didn't just bring Gay on board, he's been here for a while. If he was just brought in, that would be different. But you saw how the pps reacted, the news did NOT sustain the pps jump, did it? No. Doesn't matter why, it just didn't. The pps went down right after the little circlej*rk finished.
I hope Reed's/Raptor puts up $100 million and we will all be happy!
Why not, billionaires can afford it!?!?!?!
Stock manipulation according to the SEC. "Making false or misleading statements about a company."
AI
