I cannot disagree with you that massive dilution is possible with only the issuance of more shares for direct sales or through options. However, the authorized shares of any company can always be increased by the board, so even if the difference between the authorized shares and the shares outstanding was not much different, the board can vote to increase the authorized shares quite easily.
Fortunately, most of the authorized shares are not issued. All they represent is a cap on the total amount of shares that can be issued without requiring the board to authorize more shares. Ironically, even the issuance of authorized shares for most companies requires board approval.
In most reasonably run companies (I am not saying that SERW is reasonably run or not reasonably run), the authorized shares are used for 2 primary reasons:
(1) To raise money through investors, i.e. venture capital, private placements, or sale of treasury (company owned) stock on the public market
(2) To issue stock options to employees, board members, or 3rd parties that are granted stock options in lieu of cash payment or for incentives
How SERW will use the amazingly high amount of authorized shares can only be speculated at this time, but more often than not, as you are implying, the shares often feed a pump-and-dump.
It is difficult to say whether or not Kurlander has already made money from the pre-reverse-split times. Yes, there was a lot of buying and selling and the volume was very high. When the volume was highest, it seemed like the price direction was mostly up, which implies more buying demand than selling demand. It really depends on whether or not Kurlander was feeding his own personal stock into the buying frenzy.
Without access to insider buy and sell records and without access to buy and sell records in general, it is all speculation.
Once again, I will reiterate, unless you have insider information or know someone who does, holding this stock is gambling.
