Replies to post #21156 on BrewBilt Manufacturing Inc (BBRW)

[justinbailey]

I can explain that comment, or what I was thinking at the time.

The buyback is a double-edged sword.

Pros: The buyback, if it happens, will reduce the outstanding share count (of course). We all know how a buyback works in general. This comes at a cost however. See below.

Cons: Buyback, if it happens, will occur at a very low price. The lower the price, the more bang for their 1.5million bucks and more shares retired. This sounds good till we realize what the cost is.

1) The cost is investor trust and support levels. Lots of folks getting jaded day by day. Not everyone is using an averaging-down strat.

2) The cost is also RS risk. A lot of these pinks go to nobid and then RS when notes are still due.

The buyback also requires elimination of all convertible debt beforehand (thanks for reminder flaflyersfan), so yea we are hitting a floor of sorts, but if the price can't hold .0001, RS is inevitable unless noteholders are fine with the stock being in nobid for an undetermined amount of time. Most noteholders want their $ asap.

The notes are already creating the conditions for maximum buyback effect in a sense. Buyback end of 2020 estimate coupled with the current dilution rates and PPS drop rate guarantees a buyback in trips. I'd say at least 50% of the daily volume is dilution sell into bid + legit slaps of paul (dilutor) on the ask. 50% is actually being generous, it should be much closer to 75%. The only real question in my mind is.... is CDEL functioning as dilutor #2 or are they actually naked-shorting and buying PAUL's dilution to BuyToCover?

For the ride-or-die folks that will be buying at any/all prices, the dilution has been a gift and the price going to trips is no biggie. For guesses on most recent dilution, I would say it's a combo of BBRW issuing more shares to keep the business afloat AND noteholder conversions, none of which has been or will be spoken about in a PR. Speak about complete debt elimination in a PR and the buyback will have to be done at a higher price since buyers will react to the news since we all love a sure thing. Buyback, if it happens, will happen silently and after notes are done. No way it's happening now with 5hundo showing as cash balance on their 10-Q. They can't even mention in a PR about actually receiving money for jobs completed for that very reason. The price will jump and buyback will achieve less.