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ships772

06/13/16 9:42 AM

#15930 RE: GOLDBUFFALO #15929

No Your wrong Rock Shykora is still scamming just using another name to do it. Don't be MISLEAD
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wallstreet1231

06/13/16 12:33 PM

#15940 RE: GOLDBUFFALO #15929

COBI - My perspective:


For a minute let's just assume everything is on the up and up here. We have a company that is in transition and trying to make an honest go of it - assumption I know but please stay with me. What we know is as follows:

1) The company is cash poor - they had to go to a secondary market to borrow $19k for inventory.

2) The management stated the following in a recent pr - "Mr. Smith intends to begin focusing on Industry specific marketing/advertising to broaden the Motion Sound product line exposure through event and artist sponsorships."

3) The company recently increased the authorized shares by 500m.

If you try and connect the dots it appears logical that the increase of a half billion shares will be to raise capital for investment in the company - otherwise there is no reason to increase the authorized share count. Assuming a strike price of .0005 (very generous as todays price is .0003) for these shares this would equate to a capital raise of $250k. Next question, will a quarter of a million dollars satisfy the cost associated with the plans of the company. I would say this will still leave the company short of capital by a factor of 5x - 10x to sponsor artist and to fund marketing/advertising. Next question, so where is the next round of financing going to come from? Again, connecting the dots, this is the benefit of being a publicly traded company - stock for companies this size is often used as currency. So I would assert that another increase, or even worse, a reverse stock split could be an option the company would consider. Both of these would further dilute shareholder equity.

The above is why my opinion is that COBI is a risky investment. We could debate the many other factors discussed on this board - such as track record of the management involved etc - but to me these are secondary to the fundamentals of a go forward business model for COBI.