Ugh! Sorry for the longs here. Sad to see WNBD at 0003.
The way I see it, there are two chances here:
a) WNBD gets to cash flow positive from operations by getting some large commercial/government contracts, or
b) WNBD gets a large cash infusion from one or more investors who take restricted/preferred stock to the tune of $1mm+ (in exchange for a substantial percentage ownership).
I don't think either is outlandish. But it is risky to bet on these outcomes. I believe the company will succeed. It might even be within a year of going cash flow positive if they keep pushing the commercial angle. But even if they only need $500K more in aggregate to get to cash flow positive (and make any debt payments), if those are issued at 0001, that would be another 5B shares issued. If they need to raise $1mm at that price, then we're looking at 10B.
Then again, even if they get up to 10B, if you buy at 0.0002 and WNBD ever gets to a market cap of $10mm, then that would be a price of 0.001 or a 5X return. So, the question is whether they can get to cash flow positive or get some restricted investment in time.
Of course, the price could get bid up if company lands some major news. A higher price would greatly slow dilution. Or the price could drop so that issuing at 0001 is not possible.
Cash flow from operations and debt -- the two key elements to evaluate if one is going to hold a penny stock long term...
Wadi
