A post written for the RNVA board I decided was useless there.
RNVA
To learn from one's mistakes they need to do some deep research to understand. This one is really really hard. Mainly because of the extent Sebastien Sainsbury had to give to raise cash. And the knowledge he had to show only what's needed behind the corporate curtain.
The constant reissuance of the first debenture for more and more needed cash was only wise (acceptable) if he could show the CEO an escape plan.
Wish I understood this, before I started averaging down on previous 10Q's, which hid (left out) much of what was available in this 10Q.
IMO the goal was/is for the CEO to build a chain of rural hospitals @ rock bottom prices.
I have no bad felling about my large paper loss, because I knew better, in the first place, not to do that. But Previous 10Q info showed only enough to pass the pink disclosure standards. And I just didn't understand the escape plan. I kept saying this move makes no sense and that move made NO sense. Insiders are hurting themselves. Da ! They didn't care, they had and were working a long term plan.
IMO yes we will see more dilution. Why because it's possible and funder love their ROI. And RNVA wants a chain not pair. More funding to come if new opportunity comes.
The thing I'm looking for now, is step 3 maybe 4 of Sebastien Sainsbury plan. He's going to need new blood to delude further. And new blood comes from climbs like the last one to 3c. Not walking price down after a RS.
So I'm looking for several things, of which is a free trading price for a while and maybe within a month or so, lowering the A/S.
From the numbers I saw in this Q the A/S is 5 time larger then needed. And to hype new blood, NO dilution (free trading stock) and lower A/S is what I expect.
I like the research I've done on the management team. Think the CEO has a turn around mindset with that and so far it is working. He's gotten failing hospitals and turning them around. So long term, I have less concern and short I'll be swing trading around a core position.
If I see continued dilution, mention of farther funding or finding a 3rd takeover hospital. This babble is mute! Because once again, what I'm seeing makes NO sense. LOL
Good luck to all! Keep in mind this is one persons opinion only. And we all know what opinions are worth !!!
Ps; wish this 10Q had a breakdown of managements post split stock positions, seen in many 10Q's.
