Long post but couldn't sleep so what the heck!
Swim's been around a long time and it's easy to understand his frustration of which I partially share.
After the last split I was able to average down and accumulate a million shares while they had less that 100 million outstanding. I was very happy with this position and based on the progress reported in the news releases up to that time I thought I was in a great position to profit, hopefully substantially. I still knew this was a gamble but I thought the time was near. In my mind it had to be based on what was being reported to us.
That has proven not to be the case and that is the gamble with these pennies. However 'sleazy' it may appear to me this indeed may be a strategy absolutely required by a start up company needing cash to survive to get their revolutionary product to market. If that's the case then so be it but more in lies my investing strategy. If anyone can sit here and honestly not question all the releases from years past that have not come to fruition then they need a reality check. I can better accept that those people just believe it's a necessary evil in this game in order for the company to survive and hopefully succeed.
My latest strategy and gamble is based on my investing history with the company. I chose to get out as with this newest RS my post share count would have been pathetic in my eyes albeit in theory the share value would be relative. I'm convinced that without some substantial news on proven sales and income that I'll be able to obtain way more shares with the money I just got from selling after the inevitable post split share decline that is synonymous with penny stocks and indeed with this company. I took a substantial loss to do this but hopefully will be able to use it as a capital loss down the road. The difference of a loss and a profit to me was a matter of 10ths of a cent. With a RS that changes dramatically in that it would need to jump up to 70 cents rather than 7/10 of a cent. Big difference in a penny stock that still needs to prove much. That is my strategy and it is not without risk for me. Should it go to 10 cents post split and never look back because of substantial progress then I lose and all of you who have held will deservedly win in the way of profits for your faith in the company.
Although the information came by way of anecdote I do have an issue with the recent proclamation by management that an RS was not being discussed and then voila there's the quarterly report stating it was happening. Certainly the share volume around the time of their submission to FINRA on the RS is suspicious. Why not disclose the RS in their latest update released on Sep 22, 2011. Not very forthcoming if they were looking for respect of the common shareholder. If this is indeed some new requirement that penny stocks need to be at least 10 cents can someone please direct me to this information as I have other stocks that will be affected and have yet to see anyone commenting on those ones of a similar requirement. My issue comes from if W2 says one thing but does another then the set up of preferred shares scares the hell out of me. It's been reported that those preferred shares are set up to prevent a hostile take over and were never meant to be converted. I'm okay with that but what is to prevent them from converting them at anytime and seriously affecting the dilution of the stock drastically. Trust? I'm afraid that ship has sailed. Also why not reduce them both equally in the RS as the conversion rate they are set up for would certainly accomplish their stated goal. Not reducing them at the same ratio has a real sleazy feel to me!!
So all in all I will definitely by back in to this stock at some point as I've invested too much time and money over the years to give up. I'm just working within my own strategy which may prove smart or cause me to miss the boat. That's my gamble.
I hope for nothing but the best for all of you whichever route you take but don't be too hard on those frustrated by the history of this company which has cost them money, nor should anyone be frustrated by someone who is all in and passionate about the prospects of the company no matter what hurdles are thrown at them. We're all here to make money and there's no one route guaranteed to get you there, we all forge our owns paths based on DD and experience. I understand bashing a company or being 100% behind them based on many solid reasons and maybe some not so honorable ones but I will never have any respect for anyone who feels the need to slam other shareholders personally based on their viewpoints and wishing them ill will. These forums should be a source of entertainment for us all and not a reason to invest or get out of an investment. IHUB boards and other sites have certainly exposed me to stocks I would have never otherwise heard of but I certainly don't make my investment decisions based on peoples postings. It's just a catalyst to start some DD.
I have 2 other start up companies I've invested in, one of which predates my involvement with W2. Their businesses are polar opposites but all I can say is there is no comparison in the way management of the 2 companies have conducted themselves over the years. The one company I'm talking about doesn't even currently trade, hasn't since 2008 and won't again until at least next year but their management has been nothing but exemplary in their dealing with 'common' shareholders by way of their actions, continual updates and honesty. I wish I could say this about W2 but it just isn't so. This is an absolute wild card and high risk gamble due to a multitude of factors which sadly makes it uniquely compelling to a high risk taker and will either prove out in the end or prove us all fools.
Either way many of us have shared this tumultuous journey together and will continue to do so until the end.
For anyone who made it to the end of this message...thanks for listening.
As I've said before, the cost of admission to this game is cheap albeit with each reverse split that statement becomes less and less true. Lets hope everyone's patience and faith pays off.
All IMHO, not meant to be investing advice. Do your own DD and base your investing on that and certainly not what I have to say. Although I've dabbled in investing a long time as a hobby I'm still very much an amateur and sadly not a particularly successful investor given the time I've been doing it.
Good luck to all!
T3
