American Security Resources Corp. (ARSC)

[Leirum]

I am not recommending anything, I made a suggestion. Companies have various ways financial ways to survive for a while, but at the end, the return on equity must be in favour of the investor. If a company gets financed with toxic constructions, the best is you run away. With this company this is not the case, as far as I got out of the SEC Filings. The increase of outstanding shares doesn,t worry me, as long as it serves to finance the purpose or the outcome. The company has presently 600 Mio shs. outstanding. Let,s assume it would go up to 800 Mio at todays price you get a capitalisation of $ 1.040.000. Not something to write home about. Now let,s assume, their product finds the buyers market, what I personally believe, then we could assume, that the Capitalisation will not stay there for long. My assumption is, they will make it, and once the revenues become visible, then the margins will be understood and once the margins are understood, the market will attach an Ebita perception for 2010 and further out. What I intend to say: My risk is 100 % but the upside is unlimited, but then of course I have to admitt, it is a question if one believes that the company will make it or not and this is something, everybody will have to justify with himself, because it is his money he puts on stake.