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Re: lbird33 post# 63023

Tuesday, 09/25/2018 10:31:09 PM

Tuesday, September 25, 2018 10:31:09 PM

Post# of 132573
Great points bird! We keep hearing all about dilution, but have any of the people prognosticating about it actually took the time to calculate how said dilution would affect the stock price when VPLM wins in court (aka the up side)?

If so, I don't think they'd really care about even 100% dilution unless they are SOOOOOOOO greedy that no return is or would be good enough for them. If not, then it seems like they're in it for a short term profits or quick buck...which is fine if that's the motivation.

So let's look at an example based on the following data & assumptions:

Verifiable Data
Close price 9/25: $ .0725 per share
Market Cap 9/25: $ 107,856,157
Shares outstanding: 1,487,671,135 (from OTC Markets as of 9/14)

Assumptions
1) You bought 1,000,000 shares at close of $.0725 = $ 72,500 initial investment not including trading/brokerage fees
2) 100% dilution would increased outstanding shares to 2,975,342,270 (ridiculous assumption)
3) VPLM is awarded & receives $ 5,000,000,000 damages in September of 2019 (low estimate)
4) Legal fees are paid by defendants and don't affect the award value
5) You never bought or sold another share of VPLM & cashed out in September of 2019

Based on the example above, one year later your initial investment of $ 72,500 would be worth $ 1,680,478 or 2,318% ROI. The resulting, fully diluted share price would be approx. $ 1.68 per share. Not a bad for 100% stock dilution and 1 year worth of waiting. Please, poke holes in this example & provide a logical explanation as to why it's wrong besides the usual "can't win against the Bigs", "is a POS Stock" or "Emil is the devil" rhetoric.

Hopefully this simple example will help explain why us longs don't really care about dilution or worry about reverse splits. We're in it because our due diligence told us the the longer term return is potentially worth the risk. So please, don't waste our time trying to convince us that dilution or reverse splits will "ruin" or devalue our investments.

Here's a link to a spreadsheet that might help further understand the example if anybody is interested:

VPLM Dilution Calcs










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