Replies to post #48117 on Greenshift Corporation (GERS)

[nobody12378]

That is old information.

The OS number is 20 million, from KK himself February 18th, " ... It's about 20MM, before conversion of outstanding derivative securities, including all preferred stock."

https://www.blogger.com/comment.g?blogID=5693231676491808791&postID=4900690990416621256&isPopup=true

[Harry Winston]

This is the beginning of the third paragraph of the Management Update that was sent out on this board, and later posted on the company website, last October and then reprinted today. I'm discussing this for a very good reason, as even the most critical readers will soon see.

The stakes couldn’t be more material. We have about 30 million shares outstanding. Full conversion of our legacy debt at $0.10 per share would increase our outstanding stock by more than 160 million shares. That amount obviously increases as the price decreases; for example, to 1.6 billion shares at $0.01 per share, 16 billion shares at $0.001 per share, and 160 billion shares at $0.0001 per share.

I'm going to reprint part of this, with boldfacing added for the sake of emphasis.

"Full conversion of our legacy debt at $0.10 per share would increase our outstanding stock by more than 160 million shares. That amount obviously increases as the price decreases ...."

Let's assume that he's telling the truth about the relationship between the number of outstanding shares after this conversion and the price per share. He said that when the price goes down, the number of outstanding shares, after the conversion, goes up.

If this is true, then when the price is going up, which has happened, and very dramatically so, during the past seven calendar days, the risk that the legacy debt would be converted to stock would go down. It's the same relationship, but it's restated or rephrased.

Now let's use some very specific numbers, Kevin's numbers. He said that if the legacy debt was converted to stock at 10¢/share, there would be an additional 160 million shares. Today's closing price is half a penny lower than 10¢/share, so for all practical purposes, there is a risk that 160 million shares have already been added, and the risk of dilution will decrease if the trend of the past five trading sessions continues.

In an earlier message I posted today, I argued that those legacy debt holders would be eager to convert their debt into stock and to hold their stock if they rationally believed that the price will continue to go up. FWIW, I haven't sold any of my own shares for the same reason. I also think that the price will continue to go up.

Part of the reason for the optimism in the price is my personal optimism in the outcome of the litigation. Other posters on this board, including Nobody12378, have stated their own optimism about the outcome of the litigation, so I'm not alone in this belief. It's true that a few months ago, I was eager to sell, because I was very upset at the lack of transparency but I've changed my mind and am now bullish on the litigation and thus, bullish on the stock price. My concerns about the lack of transparency are being dealt with through the use of an SEC complaint filed last spring and with another one filed today.

I have even begun to think that the last reverse split can even be reversed although I know that this wouldn't happen until the price was well into the double-digit-dollar range, probably a price above $50/share, or about 500 times today's closing price. Call me crazy, but it's just possible that the price could be that high and high enough to warrant a 3-2 split, perhaps even a 2-1 split sometime before it's time to choose a president again.

Also FWIW, as of today, I have an actual paper profit on my investment in this stock, and I'm glad that I didn't sell near the bottom of the market when the trading volume was often less than a thousand shares per week.

Harry, a message board pseudonym for a living and now a happy GERS investor

[jobynimble]

That’s not the whole letter, here’s the link...

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=143879589

You need to read the whole letter, it’s long...