Chartman and Imakemoney,
Re Imakemoney post, here is a post from the Raging Bull thread on the subject:
"The RS doesn't have to come into play. The stock market often acts like a
futures market and may appreciate in value 3 to 6 months early in anticipation of
increased revenues and profits. A higher stock price also means less dilution. For
example to raise $100K selling shares at 8 cents takes 1.25M shares, however at 25
cents, the OS would increase by 400K shares, at 50 cents it would only be 200K
shares, etc. So a higher stock price will also mean less dilution and that momentum can
build. Hopefully, the cap won’t have to be raised and the OS will remain below 120M.
Capital is the life blood of small cap stocks, without it just attach the toe tag and shut the
lights. On the other hand, if this funding goes through and AVBC gets a $975K
transfusion, then I believe a lot of the selling pressure is off and that perpetual
overhanging supply of stock is finally removed. That money should provide enough
funds to get production back into full gear and start to generate some real cash flow.
Let’s forget the old high of $2, because we must now factor in the increased dilution
which tripled the OS. So that same high, based on market cap, is equivalent to about
66 cents today. Investors who cost averaged down at these levels may have had the
opportunity to reduce their average price to below 66 cents.
IMO, 66 cents is an attainable and realistic price - that is:
IF a full production agreement with L-M is announced
IF AV significantly increases its market presence
IF AVBC shows increased revenues
IF AVBC starts to show profit
(don’t forget the huge tax loss carry over that will keep profits within AVBC for a while)
and of course the big IF:
IF dilution decreases or ceases
That’s a lot of "Ifs" but that’s what you get when you invest in an OTC-BB stock.
On the other hand, if I’m wrong and there is a second RS, then IMO, that would be as
devastating to this stock as putting cyanide in AV."
Disclaimer: This is only my opinion, investors should do their own DD.
I’m certainly no financial genius LOL)"
While I agree that spam newsletters and some pr's won't help the stock price in the long run (although some pr's might) I disagree with Imakemoney on the issue of revenues. I believe revenues can increase the stock price. Not, I don't think, to the $2 levels that we saw before, but, as the poster uses in the above quote, a level of around .50-.70. Of course if sales go through the roof ... (just dreaming...sorry). Alot of IF's but like it says above, that's what you get with BB stocks.
We can agree to disagree. Either way, it will be interesting to see what happens. Kind of fun following this stock. Aggravating at times. But fun. Anyway, good luck to both of you.