Has anyone determined how Fayiz was able to sell over 4 billion shares without shocking the market. Could it be that he, members of his family and friends were by an large the receipients and they took stock in exchange for cash to fund new acquisitions and equipment.
I say this because if this were the case, and if the company generated substantial earnings, it could easily buy back these shares and investors would only learn of it when Fayiz suddenly reported that we had hundreds of millions of shares outstanding, instead of over 5 billion.
The reality is somebody holding a billion shares cannot simply sell it without putting the stock into a total tailspin. Such purchases and sales are normally brokered in such a way that most of us don't have the slightest idea that they've happened.
If the company had substantial earnings and virtually all the people who Fayiz placed over 4 billion shares with got double there money back would anyone complain. I certainly wouldn't if essentially at the same time it was clear the company was profitable, and that the share count was now somewhere around a billion shares or less.
I think all of this is possible if CTKH remains a Pink, but I'm not sure that Fayiz could do it if the company were on the OTC. We really don't know how much Fayiz got per share when over 4 billion shares were placed, if he had sold them into the market it certainly would have substantially lowered the price, so the buyers were entitled to some discount to the market price. By the same token, if he were buying them back the same would apply, so he should pay something under the market price.
I don't like the idea of investors in such stock placements being guaranteed a profit, but I have no heartburn if they make one. I don't think that anyone, Fayiz included, could be certain that such a venture would be profitable. However, in the slightly over a year I've been invested in the company the production capabilities have apparently doubled twice with new oven. In addition to this the company acquired Hybrid Tech which was already know to be profitable and offered many synergies with CTKH. If CTKH is operating close to its capacity, as some have said, I don't see how it can't be operating at a profit.
I cannot say what to do with that profit, I certainly don't want to quit adding capacity if the customers need the product, but I hope at least some of the money can be used to reduce the number of outstanding shares. Nothing would please me more than CTKH redoubling it's capacity again in the next year while at the same time it reduced the O/S to about a billion shares. If all this were done before it moved to the OTC we'd all see a much healthier share price when this was revealed.
Gary
