Hate to say I told you so.....
About a month ago, someone said they saw this going to .05. This company holds a couple of entities that sound very promising, unfortunately management is too "small time" to make anything happen with them.
I unloaded almost all of my holdings on this one as I saw no way of getting to .04. I've been trading it for almost two years; without serious financing it will go nowhere, IMO.
If you still hold shares, I'd keep my eye very closely on the O/S. That 7/12 PR regarding debt reduction sounded great, but your stake in the company went down 15% because of it. They are looking to eliminate a little over $300k more in debt this quarter, look for another ~15 million shares to be handed out, and that's ON TOP of the ~10 million they hand out every quarter to pay bills.
Now you may be thinking: "but those shares used to reduce debt are restricted for two years". That is correct, but consider this: the latest 10Q filing shows an O/S of 221 million, that will be over 240 million next quarter assuming completion of the PR'd $900k debt reduction plan. If they do another "Employee Stock Option" S-8 like every year, you're looking at amother ~40 million shares over the next year. Remember, the A/S is 350 million, do the math and think about it, they are running out of shares and that means one of two things: a R/S or increase the A/S. And believe me, they will not PR increasing the A/S (hopefully they will at least have a shareholder vote on it, but one never knows).
Sorry, but when I get a letter from the CEO almost begging me to hold my shares, and then the CEO dumps 39 million new shares into the market during the same quarter, that doesn't pass the smell test. Even more startling was listening to his WebCast, he's actually talking about acquiring more companies when he can't do a thing with the latest two (Chariot and Amour). How does he plan on paying for this? More stock?
The companies AACS have do have great potential, unfortunately I think they ended up in the hands of a "small time" management team. IMO, the best thing that could happen is for AACS to SELL Chariot and AFG to someone with some cash and a real aggressive plan to get them to meet their potential.
All my opinion of course, which I have backed up by unloading most of my shares. I usually look to buy at around .02; if I do buy back in, I'll be looking lower. With that said, I give my sincerest wishes for the best of luck to the LONGS who have gutted out almost two years of dilution in the hopes Chariot would bring them a nice return.
