Nice explanation smoka! Yup Jonny... "Death spiral" tends to be when the company dilutes...shares get distributed into the market....OS gets flooded and billions and billions of shares look like doomsday
....then the company does an r/s, making the SS look deceptively "cleaner".....wash rinse repeat.....death spiral!...Rather than increase the A/S to allow for more dilution they fraction the float by a 100:1 split or whatever they decide and get the room to dilute that way. The whole convertible debt thing is an unfortunate but often very necessary way for new companies to acquire capital.....(gotta get the idea off the ground, right?).....which is why our GEQU is an OTC BENCHMARK, as they have rid themselves of this form of toxic capital raising and are signing new clients / accruing cash fees to keep the lights on -- and get a beauty equity stake to boot.
Certain dogs in GEQUland don't know what they're talking about, and need to check their terminology ! To each their own though... Some need to depend on fear-mongering and the unfortunate ignorance of others in order to make their trading successful.
But the GEQU core (since last June) does not work as such! There are very very good traders here who are keen on sharing knowledge and winning as a team. We just need to cull through some of the noise, that's all!
Eyes on the prize! Have a great weekend you guys!!!
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