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Re: PoemStone post# 13842

Tuesday, 06/28/2011 10:00:37 AM

Tuesday, June 28, 2011 10:00:37 AM

Post# of 14920
you are welcome...
I hope that im right...i think the company will at some point come out with some updates as to what is going on business and corporate action wise, they cant stay quiet and keep the world in the dark forever. There are a few thnings that are very clear about the company, firstly they dont have much cash and thats why they were financing the company through the sale of stock. Perfectly legal and very common place for growing companies. Thats what the equity markets are there for and they used them for such. Hopefully, the company still has some of those funds raised and is using those funds to grow the business. Secondly, hopefully the company IS growing its business and revenues are picking up. If that is the case, then the company and all of us stuck investors will survive this temporary bump in the road. If the company does not have the cash, then they will have to fix the problem by raising capital through private investors as there is currently no stock or equity to trade for the much needed cash. In that event, they will have to do what it is that i tried to explain yesterday, which is to find a new entity to put UDS in, raise the funds to purchase that entity from private investors, and give those private investors a large piece of the freely tradeable shares that come along with that new entity. Whats left would be split up between management, and the old DTSL shareholders. The only hickups i see happening with this seemingly obvious strategy is two fold....firstly, it all depends on whether DTSL/UDS is able to raise the necessary funding to accomplish this, and secondly if they do raise the funds and do go forward with this strategy, will they continue the same course of action that they have done all these years of dilution dilution dilution to keep raising funds due to there lack of revenues and ability to stay afloat? Management would have to raise enough capital to purchase the entity, pay all the legal and auditing fees to beoome reporting and raise some more capital on top of these expenses to have a cushion of working capital so that they dont go and flood the market with stock again just to survive until the companys sales and revenues make it self supporting. This is not an easy task that the company has on its plate, considering the poor history of sales, and management decisions.
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