With what money would a buy back of any value occur? OS is $2.25B about half of that was issued in past 6 mos. let's assume 1B at an average price of $.0004; that's $400K in raised funds in past 6 mod. To buy that back at say $.02 by Dec would cost the company a whopping $20M. They have about $1M in profits over the past year.
Now nobody will spend $20M six to 12 mos in the future to be given $400K today, at least no-one you'd want to invest with. If one wanted to decrease the share structure to 1B, wouldn't be a lot cheaper to just RS it 1:2? Or if they wanted to get back to 200M OS do a 1:10? At just the cost of an Articles of Inc amendment and an SEC filing, they could do that much cheaper than buying back 2B shares for $40M.
Would that anger shareholders? Very much so. Has this company cared in the past? Well they did a 1:1000 split just 2 years ago, so clearly not.
Given their track record (changed mgmt or not), do you think it's reasonable to believe a buy back is coming for more money than they have vs a simple RS at virtually zero cost? Even if they only buy back a few million every qtr, what would it cost in earnings? Plus if this is going to $.25 or a dollar, how many could they buy back. You as the revs grow, so will the PPS with it, so there ability to buy back in the future is not much better than today.
I don't know what is motivating mgmt to want the share price to rise so they can spend every dime of profit for years trying to buy back just what they issued in 6 months, but maybe they are really selling shares now (stringing us along) and will give all a glorious surprise in Nov qtrly filing, that OS is now equal to AS or 250M more shares out. This scenario is far more likely.
My point is not to be a Debbie Downer to the party here, but bring reality back into this board. There are plenty of other downers here beating this up. I'm not needed. My concern is there are a lot of longs who've seen some nice green in their accounts that could be captured before it's lost.
Most of what you see going on here is not new in the pennys. I've hung onto that once in a lifetime stock too. Almost every time, these end up the same way.
I've said my piece. Those who decide to listen may miss the greatest stock run of all time or they miss their greatest loss. The latter occurs 99% of the time. Just think about it. And do the math.
In the absence of that which is not, that which is, is not.
