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DesertRat1

03/19/10 11:45 AM

#127 RE: Potse #126

Another post that makes sense. Thanks.
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temp luvs amy

03/19/10 11:46 AM

#128 RE: Potse #126

Potse said:

When the CEO is referring to no change in the share structure, I interpret that as primarily a reference to the majority ownership control transaction with the consulting firm.

I wasn't sure what they meant, and would assume it was a confusion of terms to attempt to assure us that there was no pending R/S. Dilution is a factor that would be encountered in most transactions. R/S is not dilutive, but it carries a stigma to many people. (It is usually done by managements who tend to be excessively dilutive and /or shady)


I was recently involved with the ACIT/JAGR change. The O/S went from about 5 million to 60 million, but the price went from a penny to seven. You could look at their chart to get an idea of the uncertainty that a deal can bring, as well as possible trading strategies.