Seven Arts Entertainment Inc (SAPX)

[sbc357]

Picked up a few .124s. Won't hold for more than a day. Wayyy tooo much risk with this CEO and the way the company prints new shares.
One positive though, for those hoping for something good:
I do believe that if they RS, say 1:10, then the new 250M AS should go back down to 25M shares unless they put in a clause saying they will not reduce the AS. I'm not sure what the rules are, but I think they are required to reduce the AS along with the OS.
Maybe that is the reason for them asking to raise the AS soooo much. They couldn't do a RS without the AS being increased because the RS would take the AS down to 5M if they had NOT raised it so high. 5M is bascally not enough shares for a company to do anything with.
They had to get the AS up to be ready for the RS, and still have 25M shares authorized after the RS so they will have shares available to do business with for the next year.