Gamma - ok, you are referring to 'dilution' as the affect of the float increasing as insiders sell shares, that is fine but it really is a twist on words. I speak of 'dilution' meaning technically that brand spankin new shares are issued; real dilution does not occur when the preferred shares are sold on the open market. When warrants or options are issued and those devices are converted into shares THEN dilution does occur, if this happened then you would see the O/S increase, we did see the O/S move up by 44M shares but over the course of 4 months so this seemed inline to me with using shares for business operations.
It is clear that the CEO has sold the 126M shares but remember it is over a 2 year period for which he was not issued any other compensation shares (just those) and he used them to be paid like a flashy CEO, it also means that he only has 77M left and this cannot last forever.
I am not incorrect about the A/S. I was commenting on how the share structure had changed SINCE October '10, which is the timeline you were mainly talking about in how supposedly these most recent months have been the 'most dilutive months in the companys history', which just simply is not true. There have been NO new shares AUTHORIZED since the Oct filing, therefore technically NO dilution SINCE then. Now, it IS true that the O/S has increased by roughly 44M shares, this is NOT dilution, this is either warrants or options getting exercised by insiders, who really knows if the insiders are then dumping on the open market, we really do not know until we see a financial report and issuance filing (hopefully soon), though I suspect it IS insiders (merchants) selling at any price to get paid for services rendered which is killing the accum/dist as you pointed out.
It is true that the A/S increased from 500M to 750M but that was after an entire year from Dec 2009 to Oct 2010, SINCE OCT there has not been a single NEW AUTHORIZED share issued; yes the float has nearly doubled and the O/S has increased by about 9.5%. Please do not talk about that O/S increase as dilution, it is NOT dilution; because of the way the selling is being done, it does negatively affect the price but not in the supply way you think. If over a four month time frame I saw time and again additional increases to the A/S of 100M+ shares THEN I would scream DILUTION from the top of mount everest and tell everyone to get out quick but this is not happening. End of 2008 -> 250M A/S, end of 2009 -> 500M A/S, end of 2010 AND up to the present -> 750M A/S.
I will freely discuss the dilutive affect on long term investors during the 2008 fiscal year, during the 2009 year and the 2010 separately but I will not and cannot agree that there has been any further dilutive affect SINCE the filing in Oct, is just has not happened though I still agree that the pps and accum/dist has been killed in recent months because of possible insider selling pressure.
As for the possible options and/or warrants which may or may not have been issued to merchants/insiders, I have no clue, since we do not have a recent financial report for 2010, we cannot know if or how many options were granted to merchants/insiders since Jan '10 which starting Jan '11 could thereby be sold on the open market, which is just about when the pps really started tanking. I am just assuming that the issuance of preferred shares did occur in order to pay insiders/merchants for services rendered, that is usually how businesses perform such an action when no cash is on hand.
As for the SEC regulations, I am not certain about the Form 4 for OTC listings but nonetheless, I AM sure that if any option was granted even if only for a single share, it must be present on that years 10k, no matter if OTC or not. You assume that the selling is done by one or even a few more inside sellers but there could be in fact tens of insiders finally getting the chance to sell preferred shares onto the market since they were issued maybe back in early 2010. I am not certain than anyone other than Wilbrink or TS own any significant stake at or greater than 5%, perhaps, I think the stock transfer agent would give you that data.
Yea, good lets stick to the facts and maybe we can together figure what is REALLY going on behind the scenes with the company, because one thing is clear so far the company has gone dark and we investors can only sit around speculating as to the potential for sales growth, insider selling and the like. All we wish to know is the real truth and not speculative conspiracy theories.
The other point I must make is that this kind of wholesale dumping from long term investors in start ups who finally get sick of watching the pps fall over years while there is hardly anyone buying, is actually very common. It happens all the time and is normal. Again, this is another reason why I always preach to buy in gradually, if you know you are buying a speculative investment, what happens as it moves down and you have no more powder? SUX. The enlightened way is to buy 1/4 position, wait a year, buy another 1/2 when pps is in the gutter and then once the plan is really working and you can see that the investment is finally starting to move, buy on the way up in the last phases.
In my own mind, I personally think that while it is obvious that there has been a cumulative dilutive affect over the years that this business has existed, I am not certain that there are any investors who bought in full boar initially when the company A/S was at 250M, if so, then I really really feel BAD for those guys, ouch. But hey, another side of me knows that it is a startup company and they MUST issue new shares each year to keep afloat in order to keep making progress towards the business plan. Taking their PRs on their word, it looks as if 'soon' the product will finally hit the market and if the company can actually start or already has started to earn a buck from sales here or there then maybe with new lines of credit and balancing the books, maybe just maybe they can quit authorizing 250M new shares each year. At some point it MUST stop, I agree, or else bye bye, I want nothing to do with this company. But like most here I am willing to wait a couple months to see if the product CAN finally get to market. One absolute requirement though is a financial report, forgetting the new product launch, whatever, it's a no-go if by end of March there is no financial filing. I am willing to invest in a company, especially a start up even if they are diluting each year to make ends meet, but only if they are making progress towards a fruitful goal which does finally happen. All the while, the only thing I absolute must demand is a financial condition report. It is that simple.
GLTA
AI
