Capstone Companies Inc (CAPC)

[Purple Wonder]

Although a R/S is not always bad if done in a responsible manner, it is hard to convince investors that it is being done to better their investments opposed to the normal conlusions that it will further dillute their investment. If the A/S is reduced by the same ratio, I have no problems with it. Being on a higher exchange would do wonders for this stock and open it up to opportunities for funds buying in.

Better at this point IMO would be to begin a share buyback/ retirement campaign. I would prefer this be done without PRing it. This would stretch their dollar farther and not cause buying based off of the info. Once they have bought/ retired say 1/3 of the float, than PR it with the new SS and EPS valuation. This in itself would create buying and strong PPS gains that could propel them to the minimal values necessary to achieve a higher listing.

Ultimately, they have finally rounded the corner by becoming profitable and earning continues to increase. These options are now on the table as what can be done with the cash on hand. But first, I would pay down the debt substantially with all cash to get the balance sheets in better shape and quit wasting money on interest (similar to a person paying their credit cards down). This would further free up funds for a share buy back if they were so inclined.

All IMO of course.