My info differs from yours.
They have NOT sold 100 million shares at .005--according to the filings. Now if you want to say the filings are fraudulent--you could say that about every and any company out there.. That 100 Million shares would be $500,000. They have sold restricted shares at .005 that will not be free trading until after June 2012. But certainly not 100 million. IF--and it is a big IF-- that guy on the phone said that--it was not true and most likely to try to present the deal as SOOOOO SO good that they already had sold 100 million shares. LOL-- a sales technique that does not work when you look at the filings.
The preferred shares are held by long term investors that do not get the shares unlocked unless management signs off. IF they converted right now, the total shares would be less than 180 million all totaled.
Meanwhile, according to the last CC the company has reduced their expenses and losses and increased their revenues . Some recent announcements have not hit the top or bottom line yet. The shares outstanding are about 89 million--with less than 47 Million in the public float.
If you expect NO progress on cash flows, then I would be concerned about restricted shares being unlocked next summer. But there is six months of potential news ahead to move the stock that I believe wwll mitigate much of any selling after June. And what would those shareholders with those newly free trading shares do if the company was trading at $0.03-.$0.05 based on real revenues and profitability? Would they sell everything?
And, would a trader buying now be upset with the possible opportunity to buy today at .0065 and sell sometime in the next six months at .015 or better--and maybe trade some more swings?
I have my eyes wide open--as long as I know the landscape.
