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Monday, 11/02/2009 2:51:29 PM

Monday, November 02, 2009 2:51:29 PM

Post# of 42439
Wanted to address the Dilution factor real quick. There seems to be alot of people "scared" that this company will dilute the shares again simply because the AS are still unchanged. I just got one question for these people.... WHY?

For a company to dilute their shares after a R/S they have to have a reason to do this. Most of the time it's a money based issue. ARTS isn't going to just go, "oh hey, lets just randomly sale a ton more shares!".

This is a company that is making alot of money, there up so far this year 1100% over last. They are stable and they have no logical reason to sale more shares and dilute. So I question anyone who is worried about dilution. Yes it's something to be aware of, but unless reasons develope within the company to force them to do that, it's not a likely possiblity. This is a company that is moving up and trying to get listed on a major exchange. They arnt struggling and they arnt strapped for cash. They are fully aware that diluting the stock would be the worst thing they could do and it's not something that they would even consider unless there was no other option.


Now for those people who say "9 out of 10 companies that do a R/S fail or have to fully dilute their stock". All I want to say to you guys is what are statements like these actually based on? Because they seem to be lacking any sort of hard facts and information. No one has posted a list of companies that have failed after a R/S.

You can take a look at almost any penny stock company thats now trading over $1 and see that 90% of them had 1 if not more R/S in their past. And they are now over $1. So to say all companies that do a R/S are doomed would be quite a false statement. The reason these companies are no longer trading under a dollar is because of the R/S. It allowed them to move up to those levels thanks to the reduction in OS and good numbers from earnings and so on. The R/S set the stage for future growth. And that is exactly what an R/S is supose to do if done right.


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