Penny, I agree that a R/S without investor support is deadly and you're right, a lot of investors sell out. Someone buys however, the total number of investors may grow or shrink.
As for the newly issued shares, I recognized that Fayiz doesn't like to take on debt, and may have a substantial reserve on hand for possible acquisition. He was apparently given the opportunity to get a service he wanted in exchange for shares and he took it. While I'd hope the day will come when he pays cash for such services, I can understand his willingness to issue shares while cash is in limited supply.
I don't know what Fayiz is planning. If he's earning millions without letting us know he could buy back billions of shares of shares if the price remains low. By the same token, if he intended to issue more shares, he'd get far more for them if he put out some good news.
I really don't like what he's doing but I hope he'll be done soon. In that nearly 5 billion shares have been placed in the last year or so, I suspect he knows who the big shareholders are. If I'm right and he's made the money necessary to buy them back at a reasonable profit to those who purchased them, he will do so. At that point the information about the company ought to be made public and the remaining stock should rise very nicely.
I'm not saying this will happen, just that it could. I don't know if Fayiz, his family or friends were buyer's of the new shares, but if they were, they may have agreed to sell the stock back at a reasonable profit at a given amount of time. I'm not saying that's the case, just that it may be a possibility.
It's sort of a Catch 22 situation. If you want to sell billions of shares you need to discount to a buyer, but if the buyer wants to sell that many shares it has to be arranged or he plunges the price he can get to nearly nothing. Placing the shares to get needed funds and buying back the shares when adequate funds are available is probably not a bad way of doing business if you achieve your goals. I'm hoping this is what Fayiz has in mind, and that he's successful, hopefully soon.
Gary
