Stocktrendsetter, I totally agree. We know that one mod sold out on that news, and likely a host of followers.
The explanation of the increase in A/S; i.e., to prevent a takeover, is suspect. What the company should have done was to justify to the shareholders the need to make a couple of solid, accretive-to-the-bottom line acquisitions, and that to do so would require an increase in the treasury of a couple billion shares. Throw in another billion or so for Garr, et.al., for salary, and road-map it to the shareholders so they know where their investment dollars are going. As it went down, the shareholders found out about the A/S, and the explanations came later.
What the company should do now (Garr are you reading this?) is to reclassify all the unissued commons in the treasury, except those earmarked for the acquisition(s) over the next 9-12 months, plus whatever Garr thinks he needs to get by, and turn them into voting-only, non-participating preferred class shares. This would not be hard to do, and could be done in a timely fashion (it's Nevada, after all). If I understand the situation, the company could shave off in the neighborhood of 4B shares from the commons in this way, the company still has its' poison pill, and the shareholders no longer have to fear un-justified dilution.
The company claims there has been no dilution, but runs are based on perception, especially in pinkydom, and even though many here believe the OS is manageable and in line, the psychology on the investor of what management =might= do over the coming months with what is in the treasury is going to continue to be a formidable drag on the stock valuation.
Again, they need to justify what the need to get by, and get rid of the rest. Eventually, if this roll-out is a success, they will have to address the A/S issue sooner or later if they hope to climb the exchange ladder. Why not treat the canchoring sore now?