Replies to post #139342 on Winning Brands Corporation (WNBD)

[lbdave]

Where do they have common shares issued to them Drew, unless they are buying them from the open market. In the IIS they have their shares accounted for, and restricted. They don't do like the other company you're thinking of did. I think he has other things to do as opposed to trade stock in the company he is trying to build.

[lbdave]

I'm not trying to be smart a$$ here, but you really need to read up on how 504 capital funding works, but don't look at the example of the sponge makers use of it lol.

[solarflux2]

I'm pretty sure the company dilutes common shares as well as through 504, otherwise the math just doesn't add up - just my IMO, and what I've gleaned from dissecting the financial reports. However, they do state the rate of dilution - in other word they are not hiding anything. The quarterly and IIS financials both make sense in terms of how many shares they state are being diluted/versus operating costs and what they appear to be spending.

To me, it's more about the rate of dilution than how they are diluting. If they continue to dilute at the current rate, which seems to be about 60 million shares every three months, it would take 14.4 years to dilute what remains of the authorized five billion shares. That is a very long time, but who's to say the rate of dilution won't slow down as they enter more stores and their revenues increase? There would be less of a need to dilute. If they can get the DRTV to a self-sustaining stage - there would be less of a need to dilute. ect, ect....

Most of the "heavy costs" of the company are in its past - R&D stuff is typically the hard/expensive part. All they have to spend money on now is advertising, and getting their products in stores.

Advertising costs are the majority of the reason for dilution right now. The other major thing I noticed on the financial statements was that they appear to be paying down some debt with dilution.

That's it. Eventually all the advertising and awareness should pay off, IMO, abd even the debt is decreasing.

And, like most everything else in life, outstanding share counts are relative. Market caps are relative. Didn't SPNG have something like 3 billion outstanding shares when it was all said and done? What was their market cap...in the hundreds of millions, if not a billion?

If this company has a high market cap relative to performance it's because people believe that it is on the path to profitability and will most likely become profitable at some point in the future, and this could have a drastic affect on the pps.