Replies to post #4674 on Redwood Group International (RDWD)

[DERBENSKI]

jerseyboy

But of course, like I said it would be foolish to convert to common in the face of dilution and thus we have a lot more than the 3 million hitting the street to explain the share drop. Like I said, the CEO is not a stupid man.

I just wonder if it was Chris Bickel's perferreds that were converted and if James's preferreds remain intact.

Regardless, the PR stated that the preferreds were going to be converted or should I say "intends" but according to you it just ain't so and who was the person that said it was very suspect?

So the common holders went from 12 million OS to 109 million or 800% dilution in 3 months? Nice.

Derb

[snow]

Of course management did not want to convert the shares and thereafter suffer enormous dilution. However well this stock might be doing fundamentally right now the sharecount has apparently exploded by several hundred percent during recent months. In such a situation there is little point in publishing new companies for quotation in the US. The sharecount may explode just to finance them. The problem is that this company is in a vicious circle with a low market cap and substantial needs for financing through selling shares.