What we have here is still a start-up company, we are on the verge of actual products hitting the market, deals being made and revenue coming in, but until that happens we still have salaries to pay, travel expenses, heck even the power bill, that is definitely hard enough to manage and keep employees paying their own bills until we are ready to go. If I was in the same position and had that option, honestly I would opt dumping shares so I can accelerate my business and keep my mortgage straight until I'm balanced. Look at that past 2 tranches that went through, pps took a hit for what a week, absorbed quickly and right back to where we are today, now we have even more eyes on this and plenty of nice news coming our way. Either way we don't know how this will resolve and I am not to worried about another tranche hitting, it absorbs quick escpecially with the steady volume flowing through here. I'll leave off with my favorite dilution post, $SRMX
What is Dilution?
Is it good, or bad ?
Dilution is when the company moves shares from the AS (authorized shares) to the OS (outstanding shares) or tradeable inventory, for cash investments in the company.
This means there are more shares at the same market price and reduces the size of the EPS.
It doesn't reduce the price or value of the stock.
But many pennylanders think it does.
Dilution doesn't change price, it changes EPS. Creating loss in company value, not stock value.
Hardly 1 in a 1000 OTC companies have an EPS to effect.
So, dilution can't effect their company value in the first place.
Whats the value of no earnings, thus no EPS.
But, the value of more cash to a startup is huge!
Cash gives them the ability to attempt to grow.
Without the cash it can't.
So logic says, the retail herd should be happy about dilution.
After all, they want the comapny to grow don't they.
On the OTC, "dilution" is the best news one can hear !
Not only does it give the company a chance at growth, it doesn't effect their EPS value one bit.
They have no EPS to effect.
Plus, every time VCs get there hands on large amounts of shares,
they buy a run, and we can trade for profits !
So, "dilution" is a win for the company, a win for the Venture capital firm,
and a win for the educated pennyland trader, on the OTC.
p.s. I would like to see updated financials to see what debt is left.
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