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Ludo2705

10/29/14 5:17 AM

#14168 RE: Justhvnfun #14167

I think you don't have to be so pessimistic. STEV has 250,000,000 authorized shares and the current O/S is 197,372,000. For sure they will dilute to achieve their plan but this is not negative dilution. The business is growing months after months. I follow this company for a long time right now and I can tell you this is the same for all small companies at the begin (even facebook has done the same). As of today, they have not yet reached the breakeven point but it will come in 2015 or 2016 normally.

Basically, they dilute to buy more seeds and fertilizers on the Stevia side (as at 30 June 2014, prepaid seeds and fertilizers reached 3,136,630 compared to 1,498,008 as at 30 March 2014). That means revenues will increase during the next fiscal exercise for sure. Furthermore, STEV has developed partnership with EBBU for CBD purposes, with a company producing soup, with darden restaurants regarding fishes and has also a new business line in the hemp industry (they have harvested and will sell their products to non-retail and retail customers via 2 E-sites).
All that means they need money to continue their business because their revenues are not enough to support all their business as of today (only revenues from Stevia in the last 10Q reports)

If you have accounting background, just compare the last 10Q reports and you will see how they are improving months after months (http://ih.advfn.com/p.php?pid=news&symbol=NO%5ESTEV).

On the negative side, the CEO and its Investors Relations do not want to issue Press Releases to support the action price and they only issue such PRs when there are real developments which is great but they remain too general and they think their shareholders only analyses their 10Q reports like for big companies. Unfortunately, STEV is traded on OTCQB where shareholders need to be reassured by the management on a frequent basis which is not the case as of today. As a consequence, STEV is listed as a Pump and Dump company by lot of investors and the share price fluctuates highly accordingly.