It's nice that they can only convert 4.9% per year, but that is still a huge overhang on the shares after dilution. I believe this stock jumps by 100% or more the minute he kills the conversion option. If Sam is serious about shareholder value, he has to know that the convertible debt is a killer in the penny markets.
As I stated before, penny stock holders are far from sophisticated shareholders. Make it easy for them to determine a value on the company and then the fun will really begin. Until then I'll just wait for dips and buy them.
I'm not complaining about the situation. I just find it almost amusing that here is a company that owes 1/10 of its sales in debt, can easily get a bank loan, and hasn't taken the steps to get the balance sheet cleaned up to date.
This company has huge potential. With just a few simple adjustments, it could easily kick sales up to 50-70% per year, clean up the balance sheet, and start making some serious noise in the micro cap market. Why it hasn't taken these actions to date is beyond me.
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