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rocky301

04/01/08 11:14 AM

#5359 RE: Wooden Indian #5354

Woody and all,

Idta could very well be in a position where the marketing has paid off and kits will move out the door and revenue will increase(hopefully with profit), this remains to be seen. Currently though they are still borrowing money from investors to operate and assuming production is increasing you may see more dilution before it is over. The stark reality is that paying for investment with shares at a discount to current price, causes massive dilution. As I said privately to a poster here, it only takes a BOD decision and $35 filing fee and presto, they have more shares. No shareholder votes needed.
They can also spend another $35 and do a reverse at any time for any amount getting the structure back to something normal. This is why a share buyback won't happen, imo. Any dollars they rake in from revenues they will spend on operations, not reducing shares when they have an easy out for that. Once restructured and revenues continue they have a chance at success, jmo...