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Re: StLXer post# 52436

Tuesday, 02/15/2011 8:54:09 AM

Tuesday, February 15, 2011 8:54:09 AM

Post# of 105535
@StLXer

Not saying that I agree with the R/S or disagee with it. I need more Information.

Here is my debate

This is going to be flipped upside down to your/my detriement.
After a 500/1 split the current investors collectively will own aporx 14% of an ultimate 100 mill share company. The other 86% will in great part be owned by big block invesotrs, and management. With all of the preferred being owned by them.



I believe that after the R/S are ratio of ownership stays the same. O/S will be 12 -13 million. Our ratio doesn't change at this point.

IT DOES change every time CBAI sells 1 share of the 83 million available. SO if we own 70% of the 6.3 billion now we will own 70% of the 13 million right after R/S

When and if CBAI sells to large investors or groups or to individual investors that 70% drops accordingly. I agree with that. Math is Math.

I just don't see it anywhere where it will be done immiediately. Will they probably sell some? YES over a period of a few years.. But what he accomplished with less then 25 million dollars over the past few years will look small compared to what they can do with 170 mill in leverage. Just my thought of how they will grow this company prior to 2015 when you better be ready and be one of the leaders in this industry.

JMO thou.

All material posted by this poster ( necktoeye) is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. By reading this or any post by this poster, you are accepting the sole respon

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