Replies to post #45075 on Southern ITS International, Inc. (SITS)

[Envigado]

I'm new to this and not very smart and with that said what's wrong with your post? A lot! Someone fix him please!

[fly_fisherman]

GM Morning All...Not Sure What You...

In all, we would have about 420 million shares around the company.

are talking about...

There is no 420 million around the company.

After authorized reduction:

250 million A/S

168 Million O/S
22 Million Restricted
146 million Float - Pre BUYBACK
82 million A/S left available if need be for acquisition etc.

They have already said they do not plan to dilute, they are buying back.

SITS has NOT diluted since December 2012!!!

These events are NOTHING LIKE A 95% of the penny stocks out there that dilute dilute dilute and have BILLIONS OF A/S, O/S, AND FLOAT.

SITS is definitely in that 5% Golden category of penny stocks!!!

[zoonall]

just read the pr more closely

[Afflictionx]

The point of the company buying back our shares is that management knows that SITS will be performing very well in the near future. By having more shares in the treasury, the companies balance sheet gains strength on the assets side and equity side through the treasury account. This will in turn generate more wealth for the management as well as us the shareholders. If management merely issues new shares using the A/S, they will be diluting the share structure and float, potentially causing excess supply of the stock in the market and therefore causing the market price to fall along with the value of SITS as a whole.

[deepandlong]

Instead of just posting numbers, I am going to try to correct what you are looking at.

A/S, or authorized shares, are shares that the company has available. This is made up of oustanding shares (both float and restricted) and the shares that the company has available to sell or use for acquisitions (this is what dilution is.)

O/S, or outstanding shares, are what the company has already given out to raise capital. This is the number of shares that are in the market and define what percentage of the company someone owns (for example, if the O/S is 100 million shares, and you own 1 million shares, you own 1% of the company). These are made up of restricted and float shares.

Float is the number of shares that are available in the market place to trade on the open market. These are the common shares that are owned by individuals that do not have restrictions on trading them.

In the case of SITS, what they have done is

- lower the A/S to show that they will not be diluting the stock (which would be lowering your percentage ownership),
- decreased the number of outstanding shares by returning some restricted shares to the treasury (this increased your percentage of ownership of the company since there is a lower O/S)
- and are going to be doing a buyback of the float, (which will increase percentage ownership again).


All in all, they are making it so that we have way more ownership, without having to invest more money.

This is GREAT news for those of us with large positions and primes us to see the PPS increase dramatically.

Share buybacks are an alternative to dividends, where the investors see increased PPS (instead of cash in their accounts) due to the company spending its available capital to give to the investors rather than keeping internally.