Monday, November 23, 2009 5:09:33 PM
I understand what you are saying, but consider this...
What if they estimated that they'll need $1,000,000 over the next year and they decided to take the whole tranche when the stock was .003?
$1,000,000 raised @ .003, with a 50% "worst case" discount (.0015) would have been 650,000,000+ shares... Because of this "raise what you need, when you need it" strategy, it should not equate to even 250 million now, if we can maintain this higher base.... and if they land a big chain and the stock runs and bases higher, the dilution will shrink even more... This is the advantage of this strategy...
The negative is that Eric cannot tell where the PPS will be at which time and he also cannot predict their early sales cycle. Things can change fast at this stage. ONE deal could double their revenue and rapidly accelerate growth... In his mind he might have thought they would be .02+ by now, but the forces of the market did not allow... They SHOULD have some degree of estimation and im sure they do, but this could also be factored into his month by month strategy.
NO ONE likes dilution, but its going to happen... Everyone has to expect a few hundred million more shares over the next 1-2 years... If this is unacceptable to ones own investing strategy, then they have to make a decision... The difference is WHERE you buy, ahead of WHICH events.
This all would not be as bad if we were moving UP...lol... Remember the decent size issuance we saw under .005, right before it shot .02+?... Eric needs to throw us a BIG bone so we can get our groove back.
PS: I could be 120% wrong on this, but my gut tell me they got a rack deal for the 300+ Canadian Walmarts... Selling 50+ bottles per WEEK in the "test" rack is strong indication and i think Eric has been throwing us clues... I understand that each rack costs about $150, which comes out to about $50,000 for a full roullout... Sure would be nice to see the NAME Walmart in a PR headline again, especially since it would be an EXPANSION and solid proof towards the success of the products in the worlds largest retailer... Fingers crossed
Have a great night everybody.
What if they estimated that they'll need $1,000,000 over the next year and they decided to take the whole tranche when the stock was .003?
$1,000,000 raised @ .003, with a 50% "worst case" discount (.0015) would have been 650,000,000+ shares... Because of this "raise what you need, when you need it" strategy, it should not equate to even 250 million now, if we can maintain this higher base.... and if they land a big chain and the stock runs and bases higher, the dilution will shrink even more... This is the advantage of this strategy...
The negative is that Eric cannot tell where the PPS will be at which time and he also cannot predict their early sales cycle. Things can change fast at this stage. ONE deal could double their revenue and rapidly accelerate growth... In his mind he might have thought they would be .02+ by now, but the forces of the market did not allow... They SHOULD have some degree of estimation and im sure they do, but this could also be factored into his month by month strategy.
NO ONE likes dilution, but its going to happen... Everyone has to expect a few hundred million more shares over the next 1-2 years... If this is unacceptable to ones own investing strategy, then they have to make a decision... The difference is WHERE you buy, ahead of WHICH events.
This all would not be as bad if we were moving UP...lol... Remember the decent size issuance we saw under .005, right before it shot .02+?... Eric needs to throw us a BIG bone so we can get our groove back.
PS: I could be 120% wrong on this, but my gut tell me they got a rack deal for the 300+ Canadian Walmarts... Selling 50+ bottles per WEEK in the "test" rack is strong indication and i think Eric has been throwing us clues... I understand that each rack costs about $150, which comes out to about $50,000 for a full roullout... Sure would be nice to see the NAME Walmart in a PR headline again, especially since it would be an EXPANSION and solid proof towards the success of the products in the worlds largest retailer... Fingers crossed
Have a great night everybody.

