Facts about swvc's Share Structure ...
Anyone who is confused about this, should never buy
a 'share' of anything, because it could be 'worth'
much less than expected.
1] The O/S was 1.28 Billion Common shares, as [supposedly]
reported on 3june2008 by the Transfer Agent. [It could
already be higher, but not yet reported. It usually takes
at least 3-5 Business Days for the dust to settle, for a
good TA.]
2] The 800 + 80 Million in Escrow, is NOT part of the
O/S [yet] , but IS subtracted from the A/S. There are
currently 2.5 Billion Authorized. [Which could be raised
to Anything, Any Day, by the guy who owns more than 50%
of All swvc Votes, UNdilutably, Forever. And, he will
NEVER GIVE ANY BACK, but he could vote himself more, or
vote for more to give to any old or new 'friend' , or
family politician, who does a good favor.]
3] So, 'Authorized Shares' is usually meaningless, in any
company where 1 guy UNdilutably OWNS 50+% of All Votes,
forever, [like swvc]. However, swvc has loans that prevent
raising of the A/S without the approval of the lender. So,
swvc is stuck with the current A/S limit, which is almost
totally used up. Only 0.34 Billion [=2.5-1.28-0.80-0.08]
more can be printed or pledged as collateral for loans,
or employee give-away 'plans'. That's Good for common
shareholders, who always lose from dilution; but Bad for
swvc when they run out of cash. At yesterday's price,
of $0.0023 x 0.34 Billion = $782,000. But, if swvc were
to dump 340 Million new common shares into the float,
the price would likely drop 50% , or an average drop of
25% during the dump; so swvc would only get 75% x $782,000
= $586,500 of new cash , Minus 'expenses' of ~10% , leaving
Only $527,850 of new cash to burn [in 1-2 months]. But,
also causing All common shareholders to lose 50% , which is
1.28 Billion x $0.0023 x 50% = $1,472,000
4] So far, not so good [for swvc common 'share'holders], but,
here's the WORST + MOST IMPORTANT PART. The whole swvc 'pie'
contains [today] ~30-50 Billion [Fully Diluted] 'pieces'.
And, All common 'share'holders Only own 1.2 Billion of them.
That's ~4% AT MOST. So, if 1 Outsider owned the entire float,
it would be 'worth' 1.2 Billion x $0.0023 = ~$3 Million ,
BUT, he would only 'own' ~4% of swvc ; so, if 100% of swvc
is worth less than $75 Million [now], then, swvc common
'shares' are Overpriced, NOW [probably by 10x, at least].
5] But, it still gets worse. Since swvc always loses money,
and is quickly running out of cash, swvc's 'businesses' are
actually 'worth' [= 'Enterprise Value'] LESS Than $zero ,
and, the whole mess is really 'worth' Salvage Value - Debt ,
which is also LESS Than $zero.
6] And, finally, THE VERY WORST PART. Just in case swvc is
ever really worth more than $zero; the 1 guy, who always
+ UNdilutably OWNS 80+% OF ALL swvc VOTES [AND ASSETS],
can just vote himself up to 99++% , all by himself, at any
time, legally. So, All swvc common 'shares' are legally
worth $zero, and always will be, even if swvc does not go BK.
extra, Sincerely. Just a few floating opinions,
surrounded by a sea of Facts.
P.S. ; Think of it this way. swvc common 'shares' are a
piece of a pie. Today, for $3 Million, most commoners think
that they 'own' the whole pie; BUT, they actually own less
than 4% of it. And, after they pay 100% of the $3 Million,
the CEO can legally munch it down to $zero.
P.P.S. ; But, all of the above is perfectly normal for all
pinkys + pennys. That's why 90+% of them lose 90+% per year,
on the way to BK, which usually takes less than 2 years.
Only the CEO's + a few 'lucky' [=Insider] Flippers, [and all
Brokers + M&M's + shorters] ever make money on pinkys.
While 99% of longs lose 99% of their cash, as they follow
their 'advisers' from pinky to pinky, usually right after a
3-10x pump, as each one goes from hope + belief, straight
down to BK, within 2 years, with a few short up bounces
along the way 'to the moon' , where the mooneys keep your
money.
AI
