Suprised you would mass post on 3 boards neg. dilution story w/GBDX.
I agree some pinks play the dilution game; only to line pockets and bail. But even you should know to generalize, and say, "must be bs dilution with large volume on the downturn" and "be careful" with GBDX is invalid. Your post friday last stated you saw a possible solid entry point. Did you not buy in at pps low retracement?, and now wish a better entry point since pps has gone up?
BS dilution of a stock is 100% of the time with a co. that has played the game several times prior, and has NO nearterm revenue to support pps increases. Thereby co. uses brief momo to dilute. The downturn with large volume over the last week or so is based soley on flippers using the chart TA to determine entry/exit point. This, along with the BS negative posts stating the co. is a scam, no office open, etc. fueled the decline. Secondly, why "dilute" only 40M shares over the last 2 weeks; if playing the game to line pockets?
Increase in share count with GBDX was to purchase additional diamonds with first shipment presold. The XMAS season is hot and shortlived and GBDX smartly did not wait to receive payment on delivery of the first 698 carats to proceed with purchase of next shipment. With such a small share count, decided to increase float to pay for next shipment which likely is presold as well.
Why doesn't anyone focus on the fact that the former mgmt. of WWCD merged with GBDX for specific reasons of large short term revenue. I read erronous posts of "likely 20% profit margin therefore blah blah.... I have been in the wholesale diamond business for over 18 years and have never made less than 34% net profit margin on rough cut stones; and over 50% net profit on finished product to retailers. AGAIN, one more time, former mgmt. of WWCD after selling canning division of WWCD for over $2M profit, merged with GBDX to use them as a catalyst. Why? Because GBDX was a smaller co. but had strong contacts in NY diamond district. Also, has existing contracts with russian diamond cutters and exporters. The new change in the russian law that allows a larger % of rough cut diamonds to be exported creates the larger revenue potential. The quality of the stones from russia thru GBDX contacts amplifies the revenue potential. NY buyers want the premium stones, and will pay for it.
Also, the bs posts of GBDX not performing is inaccurate. GBDX has continued to update thru consistent PR's the opening of the offices at 46th, as well as Avenue of the Americas location. Also specific detail on the very short term delay.
Most important is the bs posts of what people think the value is of the shipment. 698 carats @ +-$2800 a carat for rough cut; and $4300 a carat for finished stones is more accurate.
Net profit increases with smaller stones per volume basis.
Bottomline, with only +-112M share float, 380M O/S with estimate of 2M a month in revenue, pps value is .083+.
Show me with PLYCF, or PYPR, or other bs high flyers the same revenue, with such a small share count.
Penny TA, I have always valued your charts, etc., but your "must be negative with bs dilution is inaccurate.
Best Regards
Not a buy or sell recommendation.
