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Re: imiloa post# 110193

Monday, 12/18/2023 9:20:12 AM

Monday, December 18, 2023 9:20:12 AM

Post# of 111466

as before,
i def grok your "buy when there's blood in the streets" logic.
but you don't seem to worry much about the dilution risk?

curious to hear your thoughts on mark's motivation
for increasing the AS/OS ratio 5x with this restructure.

if mark doesn't plan to dilute heavily post-RS,
then why change the AS/OS ratio at all?

moreover, while mark has replied to all my other questions by email,
he has never replied to my request for logic behind the ratio increase,
despite my asking it several times.

why do you think mark is willing to write several paragraphs
explaining why he thinks the RS, uplist, etc.. are important,
but completely avoids the topic of the ratio increase?

seriously, do you have a logical explanation for that?
and if not, does that not give you serious pause for thought?



Dilution is always a risk on OTC plays, even the best of the best will have a level of necessary dilution. Many times the dilution is done in a way that kills the shareholders and in rare occasions it's a necessary cost of business that gets absorbed because the other factors can outweigh it's overall impact. Most CEOs would rather dilute into a strong stock that's breaking out because fundamentals and liquidity are improving at the same time opposed to dumping toxic notes into their O/S and killing off the hopes and dreams of everyone except the noteholders. The reality of the situation is that the latter happens more often than not, but again in theory it behooves everyone for the stock and company to do things the right way, if at all possible.

My belief is that the stars have aligned here to allow the company to execute their plan without the toxic note route. With the value of the I.P. market it affords the company a level of luxury they've never had before. I think the R/S and A/S increase is Mark making the share structure changes needed for the long haul. Why is the ratio what it is? Likely because in the big picture at some point Mark sees himself needing it. That may be true but it also doesn't imply that Mark is just going to shit the bed immediately and dump post split. When a company has massive potential value they're sitting on, they're going to leverage that to get the most out of their situation, and having ample shares to work with is part of the puzzle.

True growth plays will have dilution, it's basically unavoidable, but my strategy is to find the ones I believe have all the elements which imply they can do quite well in spite of any dilution. I loaded $DFCO in 2018 at .014 and kept adding for the next 2 years until it ran to .92. They diluted into that strength and used the very reasonable dilution to make major acquisitions and their first leg up got to .92. Now the price has consolidated and I think they're going to trigger their next leg of growth as the company makes a push towards the Nasdaq and multiple dollars, which again will include more dilution.

The element which caught my attention on both $MIKP and $DFCO are their respective charts. I can't share all of my trade secrets (pun intended), but I will tell you $MIKP has very similar elements to which I saw in $DFCO back in 2018/2019 when I aggressively bought up the quiet/bearish period.
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