Averaging down would make sense if there were probable or even possible indicators for a potential gain.Problem is no one can provide such an indication as far as I can see.
1. The existence of $500,000 + in convertibles, plus if company is even to keep the lights on, another $400,000 over 12 months, means a steadily increasing number of shares outstanding and dropping share price, until another reverse happens.
2. There is no indication of the availability of $3 million for the mill, especially as there are no reserves identified and owned that could supply the mill steadily.
3 There is a track record last few years of (a) company not meeting their own projections (b)unable to create sufficient demand in the market to outweigh the negative effects of how many shares they continue to issue for notes, services and properties.
4. The company has shown a cavalier disregard for proper disclosures , and a marketing strategy that clearly hasnt worked.There is no indication CFO recognizes this.Whether you agree or not proof is in the pudding, demand and volume not sufficient to turn situation around.
At $.02 $900,000 in convertibles ( if they can get new convertible debt steadily on this volume)mean an additional 45 million shares. However price will most likely go sub penny again, so we are looking at hundreds of millions of shares being issued within next 12 months if not sooner.
I do not see what is the cataylst for reversing this situation.
AI
