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Friday, 07/08/2005 2:03:44 PM

Friday, July 08, 2005 2:03:44 PM

Post# of 10162
Just to clarify where I get my estimation of 1.5 billion outstanding shares fully diluted, as there are some who think it is much much lower and some who are more interested in the float.

The latest number provided by the company last year was someting like 600 milion shares. Since that time it is safe to assume that they have sold shares from treasury to fund operations and possibly paid for services (ie. Livak, the audio stock tout, board compensation, etc) with free trading shares.

A look at the price/volume chart will show that almost every large volume day this stock has had was a down day, a day where new shares were entering the market. A brief scan and adding of those days would lead one to conclude that there have been at least 100 million shares and upward dumped into the market. Even the debt that was recently settled (obviously through payment of shares) seen those shares sell into the market. So I conservatively speculated that prior to the financing the outstanding shares fully diluted to be 1 Billion.

I then made the assumption (yes i know the ass u and me thingy, but i figure its too late for me to pretend,lol) that in order to get $1 million in financing on a .002 stock, your going to have to pay approximately 1 Billion shares. Why? Because that is the only way anyone risks that kind of capital is in exchange for heavily discounted shares, warrant, and options. Granted these may be restricted, but they may also be convertible debentures, either way still contributing to an O/S that has to be over 1.5 Billion.

Hope that clears up where my speculating comes from. I asked the TA the O/S, and they would not reveal it. I asked Alex for the financing details and he stated he did not have them. I could be wrong, but experience tells me that I am probably not far off base.

Robert

ps. I love it when this board gets down to arguing and discussing this sort of thing, I think it makes us all better invetors. Thanks.

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