Just balancing out my holding as per a plan.
So lets get into startup companies and how they succeed. I have completely expected to see what is happening at RNVA, share structure wise.
The CEO is doing everything he can do to raise cash to execute the company business plan. The dead give away to managements actions was when they raised the authorized to 3 bil. Opening up stock selling to pay to closed the second hospital.
You can't buy a million dollar asset without a million dollars to pay for it! So deluding was the only way to sell stock and fund expansion. Once this was accomplished what's the next move? After the dilution lowered the price to historical lows.
Boosting price into a more respectable area for a company with 2 operational hospitals. Increasing revenues through improvements, and reducing the OS to allow new funding, are all needed.
What has the company announced lately. New equipment and new staff. Share structure re-structuring. Everything one would expect management to take on to build a successful business.
In my mind this CEO is doing every thing he could and should, to drive growth and execute a business plan. What I expect is continuing funding by selling stock to the existing angle investors, increasing business efficiencies, while maintaining common values for those angle investors; to keep them happy and continue investing.
So there is why I feel, think, hope, will result at RNVA. The CEO will balance out share structure. Giving their funders stronger common stock value. Then locate and fund another acquisition. And some time during all this, the stock price will have either a price pop or price climb which will reach my lowered basis, so I can get out at, at least at, break even.
Since 85% of the common is owned by insiders, I doubt management will do anything to harm their own share value. Making me feel comfortable new CEO actions will benefit myself, as it benefits insiders.
Do what the big guys do!
The CEO just converted $250k of debit personally owned to get complete voting control of his company, with series J preferred. He's investing into his company along with several large angle investors. They are big guys. Think about what they are doing!
