I hear ys softballdaddy...
You see it as a loan....I see it as a co. that has no $$$ to speak of but wants to do business - and so, you use what you have....
Loan me money (with a hopefully huge promise of great things to come)and I'll give you stock. Period. But I'm not sure it's a loan since I don't see any kind of expectation of future paybacks. Maybe it's there on paper and I haven't read it. I thought of it as a trade perhaps.
Then again - payback comes if the company fulfills its obligations and is able to do what it is they set out to do, which will increase the share price.
I've seen IR people get paid with stock - lawyers get paid with stock -
Happens all the time especially with these small companies.
But, no, Company D might be ACQUIRING stock, but they are not BUYING stock - it's costing them money. In a way, they are buying stock - but at a much higher price/premium then what is going on.
I tell you this much though since some of these stock transactions are pretty recent:
1. They are either one of the dumbest companies on the face of the earth;
OR..
2. They know something we don't
God I hope it's Door #2 - At home if I hate what's behind Door #2, I just aim my controller towards it and BAM! It's gone. No one's hurt!
But, hey, if they were so interested in this co. - then why wouldn't they have been buying stock on the market as these low price levels and just take over the company? Maybe there aren't enough shares out there? I dunno - just throwing that our for thought and feedback. Anyone?
But, unless something fantastic happens - this sure may turn out to be a cr*ppy deal for them! LOL
I know I know - it says on the financials that projected to go to $4.50/share.
If so - Great - I want it there by June! Hey, I'm not greedy and I'm just trying to show everyone just how patient I can really be! :>) LOL
Take care all
Ginny
AI
