SPZI valuation and questions
Thanks for the meeting posts... I came across this company a couple years ago and didn't buy, but jumped in a few weeks ago... and now have a decent position with a .0004 average. Seems like that's a fair long-term holding.
I do like that the company continues to develop, that they seem to have assembled a quality staff and that they are proactive enough to hold a shareholder meeting to answer questions. All are good indications of long-term success that are often hard to find on the pink sheets.
The dilution is an issue... but it can be a good thing. Does anyone know if it's a result of convertible debt that was raised through a placement? And if so, does anyone have the amount of outstanding debt?
In such cases, dilution can be a gift to those who choose to buy out the debt through the market by scooping up the dumped shares at the bottom. Then when the dilution ends, the supply and demand right themselves and the stock price tends to move up sharply.
For a case study in this, look at the chart for GWTR... that was a case where there was roughly $1 million in debt and the conversion process drove the price down to .0006 last year. After the dilution ended last year, the price stabilized and in the first quarter the price jumped from .0013 to .0100, a nice way to make 700%!
That's the same type of opportunity that seems to be here... the difference being that SPZI has a much larger following and the nature of its product and location in Chicago's financial district make it likely to attract a LOT of traders when the price turns.
So while dilution can be very frustrating to long-term holders who see their holdings decline in value, it can also be a gift to be able to buy at distressed prices... and a great way to lock in 5x or 10x gains. Managing the average price and being able to buy it down is key.
Anyway, I'll be watching and buying accordingly... any info on outstanding debt would be most appreciated.
Cheers.
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