what! and no one realizes how pragmatic and insightful this management team is. THEY KNOW WHEN THEY MAKE A MISSTAKE AND DON"T TRYN TO "enron it" they do what they have to. they pull the losing product off the market cutting out the cancer to survive to live another day.
How long have they been "working" on this "losing" product? Some have warned the economy was failing for a long time now. I think its funny how some find it congratulatory when a company uses common sense. Plus, they were running out of shares to continue funding at *20K a month and the restricteds were up to bat. (*18K after subs)
also they don't play stupid wall st games THEY RECOGNIZE THAT THEY ARE A LITTLE PINKY.....so they do a f/s to bring the stock down to ..as you said ..to interest new posters{potentional investors } on the board.
So let me get this right, we go from the company entertaining a share buy back (with no money) to a dividend, to now creating new shareholder interest because the PPS was TOOOO high? C'mon, the company was close to running out of shares to be used as cash. A true F/S with real companies to create a PPS for new investors dont get back to the pre FS PPS so quickly.(ex. MSFT) If the stock was say 5 bux with no volume then a FS used as creating an attractive PPS is an acceptable practice. A paint job to .0014 from .0009 day of announcement proves this point. had investors been able to accept the post FS price in the low 3 zeros then maybe this could be called "creating new interest via PPS". The larger Cert holders could not allow a split at 0009 or below.Simple observation: The company needed shares(cash)and to also reward the financiers.
and last but not least .....those poor schlubs that were reversed out of the deal by the previous management are ACTUALLY back in the game, DUE TO THE f/s AND the abilily to buy discounted "restricted "shares through the conversion of the previously issued "a" and "b" warrants. This is a beneficial management team that is working diligetly to deliver a successful company to their shareholders.
Prior the FS the share price had hit levels below the B warrant pricing. Only thing, investors that purchased the warrants had their money tied up for the last year... Investors loaned the company money for 1 year interest free. The FS was their reward, now with the warrant pricing average at A's- 1@ 0004 and B's 1@-00075, the "interest" can now be recognized(traded)
thay are now running a cash flowing division in Proactive. plus have 3 other viable divisions and they have a five star management team with impeccable credencials that don't know the meaning of the word "quit". oh and yes.....how could i forget.....a whopping 700 million shares outstanding...equals approximately $900,000
Cash "flowing" means nothing if more goes out than comes in.
Post FS should read:
700,000,000 Authorized
519,755,614 Outstanding
We are looking for REVENUES to be HIGHER THAN the COSTS.
Till then little momo pops on news will have to suffice because right now the PPS is no more attractive to new investors than it was before the FS.
One good thing is all the current "investors" can rest easy knowing the company will now be able to fund continuing and future operations.
:)
