Drinks Americas Holdings, Ltd. (DKAM)

[FUNMAN]

Dilution was acceptable.

When you have time reread the 10Q sections 8, 10, 11, 12, 13 and 17.

People providing services, lenders, and companies owed money by DKAM accepted pre-diluted stock and warrants instead of cash. Those debts are now in the past.

Debts still weigh heavily. Unless cash flow increases, expect more dilution in the future. It's not bad if the company is sustained until profitable by people willing to work for the company and accept stock instead of cash. Those people and insiders gain little unless the company becomes profitable.

Examples of postive projections are investors who accepted warrants ranging from $0.09 to $31.80 per share warrants. Those people believe DKAM will become a successful and profitable company.

Additional examples include PK and other board members personally quarantying some of the debts to investors.

To me, these unrealized facts are as important as the fact that DKAM showed a dramatic increased revenue stream in the 10Q.

Nothing crushed the stock's value like the drop from $0.05 to nearly $0.01 since the reverse split.

I am bullish on DKAM for now.