TEX0717 :
"I'm sorry but anytime a company is raising the share count to 100 BILLION then they are hurting."
From Oracle:
Heavy investors often make businesses "hurt" on purpose, on paper.
If one of your businesses made you a million dollars this year, giving you a tax bill of $200,000 (20%) because of your profits, but you could make another business show a loss that offset that gain on paper so you would have to pay $0 tax for that year, would you do it?
It could be helpful financially to the principals for the GXXM to show weakness for their current fiscal year. It's what banks and big investors do with Tesla, which loses millions every single year.
Scenarios
1) This group or may not actually need to make money with GXXM, based on what the portfolio of all their business need, to balance things out.
2) They could also have mismanaged things, be devious, or
3) could have taken a few business lumps and are genuinely trying to right the ship.
4) If your business is in financial straights, you can often negotiate a greatly reduced settlement (Offer In Compromise) with the IRS. Perhaps GXXM foresees tax debts they need off their back to acquire new money or financing, something impossible to do with a Tax Lien, if one is looming ahead. Fixing the company before a settlement would ruin their chance of getting a settlement, but the IRS will settle to keep a company going and in the tax base. Applications for such a settlement would not become public record until an Offer In Comprise were executed.
We don't know what the play is, not enough actual data, only perceptions. Interestingly, they've taken the unusual step of giving a heads up of a possible reverse split. I think we'll all be surprised as this "who dunnit?" unfolds before our eyes.
