jdraney, there is dilution, and there is dilution. If there is a large multiple hotel contract from Host that puts $30 million on the board, the price of the stock will go up and dilution will slow considerably. While Tivus must build their vaunted NOC, they cannot hope to sell enough shares at .0008 to buy a Winnebago, a used MacIntosh, and a good sized outhouse for Shiva with those shares. If they are not planning on offering their services with a reasonable profit margin in the work they do, this company will have a hard ride ahead. This is why I have been very concerned about the share price at this point and what Host is trying to accomplish with their first contract(s). Tivus is walking into this relationship from a weak business perspective with a large OS/AS and dumping shares at low price points. I am supportive of Tivus, but I am not blind to business realities.
Also, if SH is talking about dilution through six months of next year, there is no way out of this but a huge RS and angry shareholders who will feel used by Tivus. If you really want to build a company with value, don't lie to your shareholders, and saying nothing is tantamount to lying. If you see it coming, start talking about it sooner than later. There should be NO RS until the share price is well above the current price and the Hosts contracts in hand. Doing a 1000/1 RS is nothing but screwing your shareholders WITHOUT strong and rising price support of shares. Besides, just doing an RS with no price point support would be a dopey business move and result in more .0008 sp. Also, this stock will have limited appeal to anyone if they continue with a multiple history of RS. I have to believe that Doug Marriott isn't that naive of a business advisor. JMHO. R3
AI
