If you R/S when the stock is going up without major dilution, a R/S can be a huge boon if it takes the stock to a higher board such as AMEX or NASDAQ.
The key is to do it when we're going up and at a high so as to minimize.
So let's say we're at $0.01 and they do a 1000 R/S. That would take us to $10 and lower our number of shares from the scary billions to the manageable millions.
If we maintained/grew from $10 mark for a period of I think it is six months, we could join NASDAQ. If there, and with real revenue we could see us skyrocket even further, faster.
The danger is if it drops. to like $5 or less. Thats usually if they take new notes that convert that it happens. If theyre making real revenue then they wont need new notes, so not likely to happen.
R/S is awful usually for sub penny stocks because it is typically a way for shady companies to milk more shares with toxic financing deals.
So can R/S be good? Yes. It can also be dangerous. Revenues first, then lets see. Hopefully management knows this. They have said over and over no, so it looks promising.
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