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Re: Myth post# 4930

Friday, 06/15/2007 4:16:12 PM

Friday, June 15, 2007 4:16:12 PM

Post# of 30565
The point is this company is in a vicious, vicious circle as long as it has to finance its activities by selling shares. Because its market cap is so low it has to sell a lot of shares to raise a little money. This situation makes it irrational to buy more shares and the spiral continues downward. If the company had been able to finance its activities through a regular loan the ball game would have been totally different.