Redwood Group International (RDWD)

[snow]

We did get some useful information. Right now the important question is how many shares can be expected to have to be issued during the next year or two to finance activities. During the past few months the sharecount has been exploding. If this continues, which may well be the case, it is of limited interest if more reverse mergers take place. If the sharecount increases by a factor of 10 it takes a lot of growth to improve earnings per share. It is bad news that the preferred shares have not been converted. The sharecount will already be more than 200 when this happens as against 29 an assumed 29 million not long ago. This approaces an increase by a factor of almost 10 in a few months. The selling of shares in FSIN seems a wise step in these circumstances.

As long as the company is unable to expand without an explosive sharecount there is little reason to buy more shares. This company is mired in a vicious circle.