Shearson Financial Network (fka SHSNQ)

[Iwantmoney]

People need to understand the effects of dilution on the market. Most OTCBB companies dilute in order to finance their operations. Dilution itself does not cause the pps to decline in direct proportion to shares being issued, but it can affect the fundamentals of a company which many investors/traders use to valuate said company. The spinsters here, and other sites, want you to believe that the shares being issued will devalue your stock, but that is only part of the story and not entirely accurate. The bigger issue that will directly affect your share price is the company's performance and investor confidence. As long as any company is on the OTCBB investor confidence will be fleeting as most that invest/trade pennies have been trained to get in and out with little regard to the company's fundamentals. I too believe in that theory, but I am playing with this one differently because of the fundamentals. I will still flip it from time to time, but this is a fundamental long term play for me. The housing market will not be in a slump forever and it has a habit of sneaking up on you when you least expect it. SFNN will pop big again...it's just a matter of when.