Rim Semiconductor Company (fka RSMI)

[jarsch501]

I think it is funny how the stock pops 10%, which is easy with the low volume, and people are heralding it as a reverse in trend.

The O/S has steadily climbed each month, amounting to 100 million shares the last year....an increase of 30%!! There is no other way for the company to raise money but through this method. The problem will only get worse as the share price goes lower and lower.

Last month the O/S increase was 11 million shares. May not sound like much, but that is basically an additional $770k that must be absorbed by the market which doesn't even include selling by anyone else. With the company in a fragile state, this is significant downward pressure that will persist for a long time.