Value Microcaps Motherboard

[southacresdave]

Nelson..TELT...I think some serious dilution is about to occur. They said in the 10Q that there is a chance for negotiation by the end of August with the Series C pref holders (who happen to all be directors of the company). They are owed $9.5M to make their shares/past dividends/past interest owed go away. Even if they settle for pennies on a share it still means a lot of shares given out. Plus, if they need cash---which they will to survive now that they owe $2.2M to former employees that they are having to pay back---it means selling shares.

The plus is that more of the work for the NY Dept of Ed will be done this quarter. Heck, they may even break even with it all. But that doesn't mean they have the capital to expand their products. And I seriously doubt any bank (in this new environment of lending) is going to loan them anything.

Lastly they are going to have to give out stock options like candy to get their new VP of Marketing (and any new people they bring in to support him in their attempt at a turnaround) to be inspired.

I think the company will survive. I also think share count will be 15M plus (maybe even 20M) by this time next year.