Replies to post #703 on Dynamic Response Group Inc. (fka DRGZ)

[cgraut]

One last comment....there are several other similiar stocks like drgp.....I wonder if Ms Rice would be interested in Dcff

[carl_52fl]

You are absolutely correct, cgraut, lots of decisions to make:

Dilution is a dirty word, but might make sense here. I'll repeat a scenario I posted over 200 posts ago(how time flies on this board), and I think this is very realistic:

"
Personally, I feel that DRG conservatively makes a net profit of 10-15% from current products. However, with the huge growth, this money is being put into new products. In fact, I think the new product opportunities are so abundant that they are overwhelming the management. To take advantage of these products, and secure patents, etc., dilution is essential. I say take advantage of these opportunities. Here's what I think is a realistic scenario:
Authorized shares increase to 200M. Over the next two years, these are used for infrastructure and product procurement. 2010 Revenues top $200M with a 15% net profit of $30M. This is 0.15 E/S with a company that is still growing at a minimum of 50%. Reverse split at 4 to 1 takes the company on the NASDAQ where it gets a 20 P/E and trades at $12 a share.
So, if you had 40K shares today at 0.04, initial investment $1600, this would turn into 10K shares at $12 or $120,000, or 75 times your money, using scenario above.

Bottom line, there's a lot of growing pains and share dumping that will happpen along the way, but I love this play long-term.
"

Without dilution, growth happens at a slower pace. This is why a well-presented-detailed plan for dilution to shareholders is necessary, and I have faith in this management to deliver.

Carl

[RandyKCMO]

CMG, I would only add one comment. I think typically when people talk about dilution taking place it is generally in the present tense. The share count has gone from 81 million on August 14, 2007...to 90 Million on May 15, 2008.....

Most of our dilution has showed up in Pink to Bulletin Board process and as some have suggested as shares given to promoters who pretty well screwed the company...by not really promoting and selling their shares.

In the last nine months the company has become cash flow positive, even turned a profit and been ramping up reveues remarkably. All that in exchange for 11% dilution.

I'll take that kind of dilution any day.

As frustrated as management is with the low stock price, I do not expect DRG will be very willing to dilute.

So, I don't have an explanation for the low stock price... other than MM games and maybe some left over promotional shares. But I will contest you theory about DRG issuing shares into the market.

Latest promoter paid cash.

Lebed .... Paid cash.

Burson-Marsteller is being Paid Cash.