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Re: janetcanada post# 41040

Sunday, 01/26/2020 11:10:50 AM

Sunday, January 26, 2020 11:10:50 AM

Post# of 41311
I have no idea what you all are seeing, but it is the first news story listed. It hasn't changed. It hasn't moved. Mystery solved... cept mysteriously on certain computers.

I might suggest being more concerned with the deal on the table than the placement of the news. After a 1 for 10,000 RS, the 420 mil shares out turns into 42,000 shares. Then they are giving 12 million to buy a company without telling the screwed shareholders the value of the new company.

Investor shares will have been diluted to .3%. To put this in perspective. .3% is the total shares held by investors and current management. Today's value of that .3% (called market cap) is $253,000. Divide by .3% (.003) and you would need a market cap of $84 mil. Total shares would be 12,042,000 at this market cap. Share price would need to be $7 to break even.

Is $7 a share possible? Sure. Especially with a total outstanding of 12 mil shares. All they would need is... a $30 mil contract with the defense department - which may be a stretch considering their marketing plan.

Only problem is that only 42k shares would be allowed to trade as the remaining shares would be held by insiders. That means no liquidity at all. If you were to break even, you might need to hold onto your shares indefinitely in order to find a buyer for those shares.

Then again, if the new company wants to go public, it is to raise public funds. .3% won't do it. They will need to dump a ton of shares into the market to raise money and create liquidity. For every 12 mil shares dumped into the market, your share price will need to double for you to maintain break even. The company needs about 300-800 mil shares to create liquidity. That is a lot of doubling of share price.

Anyone who is still holding - hope that this new company is the secret parent company of Lockheed Martin, otherwise... you are screwed.