Thoughts on the share dumping/dilution last week..
Just think, this company issued $14m worth of new shares during the first 9 months of 2006.
That 250m share dump on Friday comes out to about $50,000 worth of capital. If they need millions each quarter, that was really peanuts what we saw on Friday (although I suspect the same exact thing happened on Monday and a few other days this year.).
There will be many more days like that to raise the funds necessary to keep this company operating IMO.
$1 million dollars raised at these prices is 5 billion shares. Based on their finances of steadily losing money and no real money making going on, it seems certain IMO that they will have to raise ATLEAST that much each quarter in 2007. Much more likely in the $2-3m range each quarter IMO.
But then the price will keep dropping and 5 billion shares won't be worth $1 million dollars 3 months from now. At .0001 it will take 10 billion shares to raise $1m. Then at .00008, 12.5 billion shares.. At .00005, 20 billion shares.
When you factor in the 64.8 billion subscribed stock conversion I think it's a very good estimate that this companies outstanding share count will exceed 200 billion before the end of 2007 IMO. At it's $3m market cap, that will price the stock around 0.000015, or 95% below its current ask value of .0003. ($10,000 at ask today = $500 with 200b shares count by the end of the year). But I actually predict a reverse split before all of that happens (value would be down even more than 95% after that happens).
The company is losing money and issueing shares, just look it up in their own financials. The facts are all there for everyone to see. All of this is going down while Jim Turek is making outrageous promises of AMEX uplisting, outrageous promises of a share buy back program, and while he rakes in his outrageous 6-figure salary that he has done absolutely NOTHING to earn! There should (and hopefully will be) an investigation in this.
