You didn't like the RS back in April '07? You do realize that the RS was an intricute part of ERUC's business plan right?
They are and have been for 5 years now)funding all ther M&A activity with stock since there is no liquidity. This is very typical of a start up company. Remember all the dotcoms back in 2000 that went belly up when the market crashed? The only companies that survived were ones that actually started making revenues. Everybody that owned stock in these companies got burned. Funding M&A with stock and/or insider selling of stock for cash is how MSFT got started even. It's not like what ERUC is doing is bad, it's just one way of growing your idea into a reality. When you purchase shares of a public traded start up company like this, you are in essence directly lending the company money to attempt their business plan and in doing so you are directly putting yourself at risk of losing your entire investment if the business plan fails. We the shareholders are no different from a lending bank, only difference is that a bank won't take the super high risk to reward ratio on business plans like this and others alike. Especially during a recession.
If you don't view investing in penny stocks with this frame of mind then you are a fool, and you will get frustrated and most likely bail with a massive loss because you didn't get the quick buck you were hoping for. Now there are stocks that bounce and make shorts good money here and there, but don't chase em and don't get pissed if you invested without taking into consideration of these scenarious. I look for both, I look for companies that can pop on news and make me at very least my investment back so I can let the rest ride, and I at the same time also make sure that I believe in the companies business plan and execution. If I can't find both characteristics, I don't buy the stock! Simple as that!
ERUC could have tried many times to get private funding from venture capitalists, and perhaps to no avail. They may not have hoped to do all their M&A buy RS's and insider selling for cash, but it appears that is the hand that was dealt during these tough economic (credit crunch) times. They obviously knew that for the success of the business plan the actions they took were a neccessity even if they felt it was not the ideal way to procede. Honestly, I have no clue. But, I chose to believe in the business plan and with the latest PR release, their optimism sure has bounced upward, imo.
Everything I say is my opinion and should be read that way, I just like to try and dig when I can into the thinking going on behind other shareholders comments and intentions. Ultimately is does not matter what anyone says, the stock and the company will procede without conviction for the better or for worse and all we can do is try and learn as much as we can along the way and debate the information as it is presented. Talking is good IMO! Thanks for letting me ramble a bit on this topic because it clearly is one for debate!
~Dp
