Replies to post #20100 on ScripsAmerica Inc. (SCRCQ)

[2timehero]

It's because of the paper.

[Newtoscrc]

Ok, so I have a question. And please, no pathetic name calling or insults.

Well I see this was completely ignored elsewhere. Yawn. It's becoming clearer and clearer that it is probably the outstanding paper and the investors that Bob has surrounded himself with. The street wants to have nothing to do with these guys. Hopefully, Bob will look to putting a good IR firm and investment bank in place and move SCRC away from "questionable" groups. At this point, it's just killing the PPS.

Oh well, ask a simple question, get a laughable response.

[coolerheadsprevail]

But with all of the good news around the company with numbers, the PPS isn't really moving. Is it wrong to think that a company with good revenues and EPS shouldn't have it's stock moving up in price? Why would the PPS stay where it is with all of the revenue numbers that are coming out? With this type of annual run rate, this stock should be screaming but it's not.

I have explained this many times. In a nutshell, 2timehero is correct in pointing to the dilution.

Remember, revenues, earnings, and cash flow are all well and good – and they very much are critical elements of a company’s “fundamentals”.

However, the capital structure is also a very important metric that is also a critical component of a company’s fundamentals. Ignoring it is a risky proposition and is as foolish as thinking that expenses don’t matter and that you can somehow just magically invest in a company’s revenues. Like it or not, capital structure impacts the sp, especially of illiquid penny stocks.

And there has been nothing but endless dilution for the better part of a year now. I’ve stated this many times: Until the inventory of discounted shares flushes thru, the sp will have a difficult time both appreciating AND maintaining any meaningful appreciation. And the past 12 months have played out exactly as scripted, and those who stayed true to the SEC filings and ignored the poison being peddled by JOSEPH ZAMPETTI and his fellow criminal death-dealers, have done well for themselves.

The key is liquidity. The more of it there is, the quicker the overhang will flush thru. There is a light at the end of the tunnel as the past couple of Q’s reflect much less new dilution, so we are at least not replacing flushed overhang with new dilutive shares. The overall size of the overhang IS shrinking, albeit very slowly.

Timing is critical with penny stocks. Sitting on the sidelines for a stretch and/or trading the volatility has nothing at all to do with what we think of SCRC’s long-term potential. It is all about recognizing that the mountain we are trying to climb is experiencing an avalanche, so let’s not be stupid and try to climb thru it – let’s wait for it to subside and find a better, less risky entry point (literally). Would you follow the advice of some stranger who texted you a message telling you to ignore the avalanche and start climbing now-now-now? Of course not. But yet, inexplicably, many retail investors did exactly that when they listened to JOSEPH ZAMPETTI and his CORE group and bought into SCRC while the dilution avalanche was still going on – and many have never been heard from again…

GLTU