Mr. Greek,
In the event of debt or receivables defaoult, in a reorganization, they simply will inherit the assest of SLS and the reorganization will totally wipe out the common. They could care less about the common shareholders. Far an example, look how the common shareholders fare on airline bankruptcy re-organizations. All of the great product, future sales, etc. if it materializes will go to them and common shareholders will get nothing. This is how is goes.
That preferred continues to earn interest which further dilutes the common. Bankrupcy is never kind to common shareholders when the combined amount of debt and preferred exceed shareholder equity.
To assume that the preferred C interest and the common shareholder interests are the same is rather naive. They have what is called "liquidation preference" to the common and they will make sure that they do not share any future sales, cash flow. earnings with the common shareholders.
This step can only be delayed if SLS has the kind of cash postion, inventory and sales to sustain itself. The recent actions to choose to be delisted by not paying the auditors fees speaks volumes about the true financial condition of the company. This reality has been ignored by many of the shareholders that don't understand this truth in what happens in reorganization and continue to build positions in light of the rather obvious conditions surrounding SLS.
Good luck on buying more when the company cannot file it's true financial condition. This usually is what happens when it is totally negative. Until one can see financials, buying more of this stock is just asking to lose more money while denying the obvious.
That's just my opinion
