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Re: Speedster900 post# 51635

Sunday, 11/14/2010 5:35:34 PM

Sunday, November 14, 2010 5:35:34 PM

Post# of 86719
Exactly, I have seen numerous examples of where financing deals for large amounts of dollars have been done for prices substantially higher than the stock was trading at. I remember when SIRI was trading at .50 and financing was done at $1.00. After that the stock traded as high at $10 per share. So to say that financing deals wouldn't be done at higher prices is strictly not true. Also, I've seen it done numerous times in the biotech field, where big pharma will take equity positions at prices substantially above the current price, in order to inject capital into a company. So will DKAM have a similar deal? Only time will tell, but I believe part of the entire recapitalization process will be for new funding deals.

But saying the stock is only worth .05 because it's trading at .05, would be like saying Bank America was only worth $3 a share a couple of years ago, simply because it was trading there.

It would be like saying Delta Airlines was worth only $6 a share, because it was trading at that price.... That's why they use other metrics than market cap to value a company, such as price to sales ratios. But we know that... Should be a very interesting few months for DKAM investors.