Flexpower Inc. (FLXP)

[busytrader]

I hope you are right. But, the problem with going public the way they are is dilution after the initial price is established. If you look at an IPO, that is done differently. Shares are offered privately, pre IPO before the public can buy it. Example, a company is offering 20 million shares privately at $10 a share. Those shares are purchased prior to the stock trading publicly. The company sees 200 million dollars upfront before investment banker fees. The market cap and share structure of that company is known immediately. If the company is considered undervalued based on future earnings when the stock opens publicly, it will rise. Remember, the company's value was raised when it sold the 20 million shares, not counting the previously established value. It will fall if perceived overvalued which usually doesn't happen.

The problem we have here is the money raised to fund company operations is dilutive because no pre trading funds were raised like in the above example. So, where does that leave us? We will probably get screwed in the long run. Again, I have learned some very valuable lessons in pinky land. They will never ever see another fresh dime of my money.