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Re: nWo post# 201

Thursday, 01/08/2009 2:21:02 PM

Thursday, January 08, 2009 2:21:02 PM

Post# of 27507
I don't know your level of experience so don't take this wrong. It is evident in my opinion that this company is issuing shares to pay off debt. There are 2 important figures you need to know about share structure, authorised shares and outstanding shares. As a company uses shares they dilute the float, dropping the value of each individual share. So each time they use shares to pay the debt load they need more shares to do it. When they reach the point that they are maxed out and need more shares they will do a reverse split 100/1 1000/1 whatever they need to restart the share clock. This reduces the outstanding shares by whatever the ratio might be. The reverse requires a symbol change by law. Most if not all companies doing this will file the appropriate paperwork with the sec first and then release the news to the eager public. I am just making an educated guess as to what will happen. I have no inside knowledge or precognative abilities. I think I'd be willing to bet you though