Rennova Health Inc (RNVA)

[Bidsmaker1]

Joh64 RNVA doing a RS and AS increase are necessary tools in their rebuilding of the company and could be good for shareholders depending on how exactly those tools are utilized. This is ultimately the risk shareholders face. The problem as I see it is there is no controls limiting exactly how these tools are going to be used by the company. If the company really intends to increase value then AS is used to improve its financial position generally via acquisitions to improve assets and revenues. A RS as a tool can be used to consolidate share structure generally for purposes of meeting listing qualifications on exchanges. Unfortunately both AS and RS can and frequently are used simply for dilution followed by new rounds of selling shares to unsuspecting retail. The difference for shareholders is generally identified by examining the company. What are the existing assets and revenues. Are they tangible assets? Does the company have revenues that come from an established market? Is that market identified as a niche market and demonstrates a real long term need? Does the company have debt? If so is it likely the company can obtain better financing? If so, how and when, what type of finance? At what point will the company be able to break even based on cash flow? These are some of the issues I look at along with what steps have and are being taken to grow the company assets and revenues and at what point do shareholders benefit? And finally, can the CEO, BOD demonstrate competences in these areas? It is a real risk to shareholder capital but then if not this would not be trading at .0008
You have to measure the risk/reward and determine a trading strategy.