On every transaction involving the sale and purchase of stock, both parties are convinced they are right... one believes the stock will go up, the other believes it will not.
It sounds to me like you are convinced that $SHAR is not going to go past the 3 cents. That's fine. It's your money, you invest it however you want.
I am wagering that it will, in fact, go above 3 cents, and possibly more.
Why you ask? Easy! You stated yourself that the company is looking to raise up to $1,000,000 correct? Now how does a company like this raise that kind of money?
1. Mezzanine financing. Not as easy as it sounds given today's economic climate. Very tough for companies with extensive track records to get this type of financing.
2. Sell Shares to private investors. Maybe. However, with the restrictions on 504's being enforced now, any shares would have to have a 1 year restriction period. Very tough again without extreme dilution. If the company was going to go this route, they would have already.
That leaves us with:
3. WARRANTS. Remember, there are warrants that will kick in when the stock price gets over TEN CENTS per share. $1,000,000 with price of TEN CENTS per share would indicate that the company would only need to produce 10,000,000 shares or less than a 10% increase in current OS.
Anyways, I'm sure you'll have other things to do now that you've eliminated $SHAR as a potential investment. Good day to you sir.
AI
