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MinnieM

02/20/11 8:16 PM

#53252 RE: necktoeye #53250

I got it right and I fully understand what A/S is. Let me repost part of it again. I clearly show the percentage is the same pre and post split. That's stock 101.

What decreases the percentage owned is that increase in A/S which will be used. Matt has no choice if he's going to continue with acquisitions and everything else he wants to do. It's not being added for decoration in the filings.

Excerpt copied & pasted from post you responded to:

Here’s a sample:

Current A/S = 6,945,000,000
After a 500/1 r/s it will = 13,890,000
Increase A/S to 100,000,000 after r/s.

500,000,000 shares currently held will become 1,000,000.

Presplit, the 500mil is roughly 7.2% of 6,945,000,000.
Postsplit, the 1mil is roughly 7.2% of 13,890,000


Now, let’s increase the A/S to 100,000,000 after the r/s.

That 1mil held is now 1% of the A/S.

In my mind, 1% is quite a bit less than holding 7.2%. It’s about an 86% drop in percentage owned from pre to post split.

This increase in A/S needs to be considered since it wouldn't be happening if it weren't going to be used. JMO

http://sec.gov/Archives/edgar/data/1289496/000135448811000407/cbai_pre14a.htm






In Reply to 'necktoeye'

Seems you might not understand what THE A/S is or what it contains.

Your assuming your percnetage as if the 100 mill on the A/S will be sold the day after the split.


10000000 shares = X / O/S pre

2000 = X/ O/S post

Same %. exactely the same as a matter of FACT.


% only decreases if they sell shares from the A/S

Get it write.



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Booger Red

02/20/11 8:30 PM

#53255 RE: necktoeye #53250

Yes, you're correct. The only thing that hasen't been mentioned is the idea that Matt will use the A/S wisely, and only purchase companies that will enhance our overall growth and increase our revenue. As Matt continues to grow CBAI, the pps will appreciate. And this is a Good thing. So, based on this scenario, shareholder value will be increasing.....not decreasing.

On the other hand, if Matt were to haphazardly use the new shares for something other than growing the company, then I'd agree, with the idea that the pps would suffer. IMO, there, ain't no way in &ell, Matt is going to spend out money unwisely.
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MinnieM

04/20/12 1:21 PM

#79326 RE: necktoeye #53250

It seems that the increased AS was sold fairly quickly. I got it right. It's all gone except for a small amount some creditors hold. Dilution is almost over now.

It may actually be time to pick up a few shares. If it doesn't go bankrupt it may actually go up now. That's where the gamble is. Anything could happen.

This MAY be a good time to average down for those that are upside down in here. It's all a guess...