Winning Brands Corporation (WNBD)

[User-65225]

The dilution "rate" is less then half of what i've been posting and using for calculations... So im happy with the news!

Posted by: Rocketstocks Date: Sunday, September 06, 2009 3:42:27 PM
In reply to: frischi who wrote msg# 101444 Post # of 101940 [Send a link via email]

WNBD took 3+ years to issue their current O/S.

Now keep in mind that the reason why the O/S was so large is because they had to raise funds when it was MUCH lower (2007). Higher prices reduce the issuance "rate"... The max they can raise per year via 504 is $1,000,000. If these shares were issued at an average of .005, we should only see 200,000,000 issued in the next YEAR. Or 16,666,666 per month... Then consider if the stock trends higher and higher, the dilution will be reduced substantially. A .01 average would be 100,000,000 year/8,333,333 per month... We trade about this much per day

This makes the market cap very attractive right now IMO... And remember, we are not buying this stock based on past sales, stocks are accumulated based on future potential (multiples).

Expansion into the USA mass retail market is significant on its own, but there are so many products, countries, reps, joint ventures, etc in the works, the ODDS of one or two initiatives hitting it big and attracting a ton of interest to the stock far outweigh the risk of dilution IMO.... Better risk/reward than most pennies

People just need to keep in mind that this stock will be volatile (like all pennies) and prepare accordingly. As much as this thing came down from its high, it could could make it all back and more with one or two big PRs. FAST!

THIS is the gamble here.
---------------------------

Posted by: Rocketstocks Date: Sunday, September 06, 2009 4:25:03 PM
In reply to: J-Rhino who wrote msg# 101446 Post # of 101941 [Send a link via email]

I predict less than 1.6 billion, but its not bad to assume a worse case scenario.

The current O/S is 1,274,337,353 as of August 28. If they issued the full $1,000,000 @ .005 it comes to 1,474,337,353 target a little less than 1 year from now (before they can open a new 504).

...but then consider that the current O/S already accounts for some of the open 504, so it could be less than this.

1.5-1.6 billion O/S in a year from now seems like a good worst case range, factoring in a possible lower share price and/or other reason for issuance.

If they expand into a USA Home Depot, Lowes, Wally, Target, etc the CURRENT PPS a year from now (with the higher O/S) would be a bargain IMO.

Now imagine if they land 1 or more big name retailers and revenue/profits were strong enough in the future to reverse the trend and initiate a buy back, as Eric has mentioned?.. This company does not have much debt (per the CEO), its all been covered via 504. So there are no major convertible bonds, loans or other exotic vehicles weighing on its shoulders (per the CEO), which is a GOOD thing.