Agreed. Latest PR is positive. Stated that next shipment to arrive *mid to late dec.; which indicates within next 2-3 weeks. Prior PR stated 2nd shipment to arrive shortly. So now within 2-3weeks+- is not shortly? Being presold, if shipment arrives by 12/15, additional net income to GBDX could be received within weeks.
The positive PR put out tuesday premarket was to inform continued operations of GBDX. Apparentely, some traders took it incorrectly, w/ price opening lower than previous close. MM's said, no problem, we'll accomodate your unfounded neg. momo, and played pps down all day. PPS continued down as smaller traders bailed with continued negative pps momo. The avg. trade was +-50K-100K shares=only $450-1000 value per trade. Small traders panic selling, without validity.
The O/S count only increased to +-420M shares from +-380M shares IMHO to facilitate JV, and purchase 2nd shipment. But perception is massive dilution, delays?, etc., causing pps decline w/negative perception. If mgmt. of WWCD merged with GBDX to just dilute, would have done so w/10X current share count when pps was increasing from .008 to .07 at time of merger! Upon completion of merger, O/S count was still only 320M+-. Then, with needing to fund purchase of 1st shipment, GBDX increased O/S count to 380M+-sh. Only 20% and for asset based purchase. Then, upon JV and 2nd shipment, increased share count only another 40M+-sh.(14%). Currently, total O/S is only 420M. For a stock with potential monthly revenue net in the millions.
GBDX is proceeding as stated. And please, negative posters do not respond to me stating "bs dilution"; or 2nd shipment arriving within next few weeks is too late. Or, if such a good stock, why pps declining. Decline in pps based on flippers, MM's working weak hands and panic selling, period. PPS decline is NOT based on fundamentals, or huge O/S count/dilution with this co.
Retailer demand for XMAS business likely covered with 1st shipment, why it's presold. And if 2nd shipment received by 12/15, still adequate time if additional product is needed prior to XMAS. The wholesale diamond market is a year round business. The overall demand for quality stones to retailers is in a continued upswing.
Adding 10-20% to O/S count to only 420M is not excessive, line the pocket dilution. Its paying for growth with asset based product needed and possibly compensation to JV partners.
If bs dilution does occur, it's not done at a point where pps is at shortterm low. Selloff today was misguided overreaction to initial down at open.
PR even stated that Diamond Certificate would provide any/all diamond product required to service demand thru 07. And, if demand exceeded that capability, JV terms allowed GBDX to acquire product from other sources to "continue" supply to meet demand thru upcoming year.
IMHO, the pps direction shortterm does not accurately show the real nearterm revenue potential/small O/S total of this stock. However, I understand owners of this stock who are in a current loss position; and upset/frustrated, asking WHY???
I am frustrated as well. But I still believe that real revenue/small share count =large pps increase at some point.
GBDX has this ability, IMHO.
Good luck to all, Aloha from Maui. Time for bed.
Best Regards
Not a buy or sell recommendation. My opinion only.
