Seven Arts Entertainment Inc (SAPX)

[Mo Ism]

It's true that the only downside of the report, that I failed to mention, is the many details about increasing the A/S and issuance of more common stock.

It could be that these numbers and figures were necessary to be in there, otherwise a possible R/S would still not meet requirements and NASDAQ would have no basis to allow the extension.

It could be that Hoffman does wish to continue raising capital and diluting because of lack of cash. This last part is obviously true. That is the whole purpose for SAPX to be on the NASDAQ market, so that they can use investments to pay for their business while it takes off. But the question remains to what extent will he do s, and to what extent will deals, positive revenue, and PR's counter react the PPS movement.

That being said this is a stock with risk but there is very good possibility that even if it doesn't realize it's goal of $1, this will make it up to .40 or .50 in next 3 months at least on pending PR. Be cautious while trading and seek your exit points accordingly.

I don't think Ihuber's will be able to control movement of this stock and SAPX will carry out its plan and scheduled PRs regardless, so I have no intention of persuading anyone here to act in either way. My recommendation is a HOLD.

Disclaimer: I am long.