Wednesday, February 14, 2007 1:07:39 PM
I believe you are correct for those companies with honest intentions of growing their company. I think what some shareholders see as being dumped on or as “dilution” the company sees such as “financing” when it comes to selling shares into the market. Why? Because they can justify how the funds are going to be used to grow their business plan for growing the company. None of us likes it, but it happens within the penny stock world. The key is when will it stop? I think it has stopped with CHNW. Please know that what I think doesn’t matter either.
Any company going from 581,510,267 Outstanding Shares to 4,320,510,567 Outstanding Shares as what has transpired with CHNW has definitely released some shares into the market. That is not debatable. The reason is debatable, but now that the company has stated that there is no dilution and that they are now done financing, I feel as you, I think we should give them a chance to see if the share structure remains transparent.
I think either Allinxxl1968 or GABRIELXX, whom both I believe, posted an email that the company has bought back 1 billion shares and retired them back to the Treasury thus far. It was also mentioned in the PR that CHNW had been buying back shares. Since the exact number of shares was not placed in the PR, I am guessing that they must not be done buying back shares. At these price levels, why wouldn’t the company consider buying a few billion shares to retire back to the Treasury to create a comfortable level for a share structure to fundamentally enhance the company’s valuation? This also reduces the float too. It would be nice for CHNW to PR the amount of shares bought back along with a new and lower share structure.
Your normal penny stock that has plans of ripping off shareholders normally would not go through the trouble of spending money to generate two years worth of filings. I really do think that CHNW has a serious and fair plan for growth.
http://www.pinksheets.com/quote/finance.jsp?symbol=CHNW
All companies in the penny stock world usually have to sell shares. That’s normally how they survive. That’s because none of them are profitable. Achieving profitability is what they are trying to obtain. Until they obtain a market that is buying their product, business, or service to the tune of where their Revenues are greater than their Expenses, they will be forced to dump shares to continue existing. How else will they pay for the bills? This should be understood by anybody buying any stock within the penny stock world.
I think CHNW has a plan for paying the bills without anymore dilution or financing. I am not sure what all is happening with CHNW, but from doing my little DD on CHNW I do think it is well worth the risk considering the upside versus the downside. Every blue moon I seem to get one of these right.
v/r
Sterling
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