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Re: techtrade post# 3484

Friday, 04/15/2011 12:57:26 PM

Friday, April 15, 2011 12:57:26 PM

Post# of 6560
Ok, here's the math, from another post on another board but it says exactly what I'm thinking:

"First, if you take shares from authorized "account" and put into the open market "available shares" restricted or not, I don't care how you look at it, it is dilution. If CPOW does ask for the 30 million dollars over the 30-36 months then those shares, however many, will go into the market place. Thus dilution, yes there are restrictions in place, but, IF they utilize everything available, DILUTION will take place, that is fact. Question is how CPOW utilizes this money and whether or not they increase revenue and profit. Look at the recent link I provided, there is a HUGE competitive market in Canada, Plants already built with HUGE capacity. The only thing this does is prevent CPOW's finance sheet from showing increased debt that a business loan would show. Regardless, and I'm repeating myself here, more shares available equals dilution. Since this company currently has a negative revenue, with only 400K of assets, this stock is already overvalued until revenue streams in and profits are shown.

Look at it this way, after 30 months (lets say) there are 480 million available shares, they just doubled the amount of shares available, thus in all reality cuts the value of your shares you currently hold in half. They MUST show the general public the increases in revenue to offset this doubling of shares. Anyway, to avoid argument, 480 million only used as an example for easy math."

Now to add, I hope they do have the plans in place but they have to be good ones and have to increase their revenue quickly or the dilution, which may be good for CPOW does nothing for we the investor. Time will tell.

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