TheDirectory.com Inc (SEEK)

[mdimport]

A lot depends on TD 2.0, BusinessList.com and the fact that $SEEK hasn't diluted since 07/11/2011.

TD 2.0 and BusinessList.com will expand the revenue generation capacity and a lack of dilution will increase per share earnings.

How much will revenues rise? Wait till March and get two real data points....

I figured that for TD 1.0 $SEEK requires about $100k/quarter to break even and most of the excess flows to the bottom line. That's about $20k revenue per channel.

As far as dilution, there's currently an extension by most debt holders until 01/15/2012. That extension has been rolled on a short leash for almost a year. So far $SEEK has been profitable for eight months in a row. I guess that's why the debtholders are confident enough not to convert their debt to equity and dump it into the market.

The only reason I can think for the 3.5B A/S vs. the 2.5B O/S after so many months without dilution is the potential maximum number of shares that could be converted if the bondholders got cold feet. Since $SEEK covers it's operating costs and generates profits consistently, the risk is much lower. I am gambling on further rollovers, Scott Gallagher keeping his word to pay down the debt and do the share buyback from cash flow.

TAMPA, FL, Nov 15, 2011 (MARKETWIRE via COMTEX) -- TheDirectory.com, Inc. (PINKSHEETS: SEEK) today announced that it has secured a freeze from certain debt holders to refrain from converting debt to equity through January 15th, 2012. The company plans to be completely debt free by the end of 2012.

http://www.otcmarkets.com/stock/SEEK/news