Satellite Newspapers Corp. (fka SNWP)

[toddeholden]

no, you are probably right. i stated that they will probably dilute to fund phase 2. i was just working out the numbers based on available info.

management may think the stock is too cheap, and they may reverse split it, but before further dilution, i dont think it is important. it doesnt matter if the RS is 1:10 or 1:100000. the underlying asset value and cash flow from the properties remain the same.

i once saw a preferred shareholder end up with 99.5% of the OS because of death spiral financing. i dont see that happening here (yet). i am merely suggesting that after the deal is inked this may be in play sometime during the 6 months leading up to the next phase in their business plan.

regards