This company is rapidly growing. They are improving margins and growing revenues at a good clip. The dilution issue is mainly from a reputation of other start-up companies the CEO has owned. This company just might be different. They have over 2 million in cash which puts a 5 cent floor on the stock price at 20 million outstanding. That said, at 5.9 cents a share cost, you are buying 5 cents a share insurance and paying 0.9 cent a share for 5 cents a share profit and ever expanding revenue from new contracts and future growth.
The above does not imply that there is no dilution on-going. They are expanding into Africa and Hong Kong. There are start-up costs involved. PV, the CEO, likes a clean balance sheet. He came through the recession smelling like a Rose. Dilution is an issue that scares many investors away. But, is it a bad thing here? There is absolutely zero chance of BK like there is with other BB and pink sheet company's. There could have been 50 million outstanding and this stock is still cheap. Why, again, 2 million cash. That covers 5 cents a share with no multiple. At 5.9 cents a share, we have opportunity to make a huge profit. Dilution shouldn't be a concern until this stock approaches fair value which should be about 50 cents a share at current outstanding, and that's figuring -0- growth in both revenue and profits going forward.
This is a BB company which means they must file an audited annual 10K which verifies revenue and profits filed in the 10Q's. I have read the 10K and see no problems. I suggest everyone should read the latest 10K.
One last thing, bashers are hear for many reasons, some personal and some professional. If you do your own DD, they cannot scare you out of this stock.
AI
