I won't comment on specific's here, as I don't want day traders to take advantage of anyone who posts. But I will tell you this, and that is MB/JB are addressing "shareholder issues" outside normal business practices.
What I mean by that is by creating trust-agreements [verbal or written] between them and shareholders. More specifically but still in general terms, the ability to create long-term shareholder value.
What most CEO's of penny stock's don't understand is that the value of shareholder trust is way more important than any acquisition, any 10q, or other news items.
Say for instance a company has an O/S of 500-million, but through acquisitions they've already ate up 300-million. During the process of acquiring 3-companies with that 300-mil, the companies all agreed to 80% in stock, and 20% of the value in cash. So that let's say for example each company got 100mil plus cash.
Upon the first acquisition, and during negotiations let's say the pps was .01cent, thus more shares would need to be given, right? Yes. Let's say the second acquisition about 6-months later the stock was .02cents... does that allow more SFNN clout going into negotiations? Absolutely.
So let's say both companies received their stock restricted for 5-years at .05cents. Ok. Now the stock is at .03cents and here comes the third company SFNN is wanting to acquire. Does SFNN have more clout now, and with a higher PPS have the ability to use less shares of the O/S at the negotiating table? Yes.
CEO's assume that with a great purchase, investors will come onboard thus carrying the pps higher so that during his next venture, he has more pps clout, thus he doesn't need to spend as much in our shares as he would of had prior. But unfortunately it doesn't work that way if trust is not developed between management and shareholders from all perspectives.
Let's say SFNN wants to acquire another company? How much O/S do we have left rounded off? 200-mil. If the stock was at .10cents going into the next round of negotiations, would it require as much stock as the last? Absolutely not! So the point here is to create long-term strategies of TRUST... between management and would-be investors. SFNN is going through those startup motions, getting geared up from a host of fronts to create these trusted-values in order to acquire more companies for less stock with only 200mil left.
Personally I have been very very adimate about creating these trust values before any more acquisitions come about. This way when the pps rises, and MB has done his thing creating long term investor values [incentive to stick around], we get more bang for the stock dollar with our last 200mil.
We all know what it would be like if MB adjusted the O/S to 1 Billion, that just won't work.
So....... we move forward
Temp'
