California Grapes International, Inc (CAGR)

[armour1955]

Shark...i refer to the shares that were issued last year to repay loans etc...look at the reconciliation schedule attached to the annual financials at the website. The CEO does something that most pinks would not dream of...outlining exactly how many shares were issued and why...it amounts to dilution in that you have hundreds of millions of share OS and no earnings or sales to accompany them...so it puts mgmt in a good, cash flush short term position but intermediate to long term it weakens the company in that it does not have the resources to defend itself against an aggressive short thus trapping existing shareholders into a holding pattern pending sales and earnings which may not be sufficient to attract enough buying pressure to cure the short problem... ALso, a rising PPS prevents a young company from reducing the OS without a RS because it can't afford to use working capital on share repurchase when its needed to fund operations and growth... a real catch 22...a rock and a hard place...a trick bag...etc etc etc... without stellar growth in sales and earnings the pps may languuish for months...this is what the short is banking on....will sales be stellar...i think so accompained by earnings....and i hope the buying pressure comes...but if china has a short term hickup it could delay the materialization of the buying pressure for chinese based microcaps generally...