You do have some valid points but seem to be looking at it more from an investors standpoint than a business one. Advertising does cost money of course and that would create more liabilities in the form of debt obviously but that is true with any and all companies. The point of advertising is to bring in more revenue in the long run than what it costs them in the short run. Obviously, the majority of money generated through advertising, for a company like TheDirectory.com, comes in the form of more subscribers. Not only would advertisement make more potential subscribers aware of the existence of this company, but it would make the population as a whole more aware. Making the population more aware would, in theory, increase traffic through TheDirectory causing more revenue to be generated on a per click/reference basis. Also, future subscribers would be more willing to sign up and advertise through a website that deals with more user traffic because that means more exposure per dollar spent.
Don't get me wrong, I'm not arguing with you and this is all in my opinion and based on theory. I do see where you're coming from with the buy back now while it's low kind of mentality because that would mean more shares out of circulation. I'm sure a lot of investors, including myself, would like to see that happen but the reality is, for anyone who isn't just looking for a short term profit and is serious about holding shares in this company for one+ year(s)then growth would be the best thing. Like you said earlier "this stock will never reach single digit pennies with this share structure" so why would they, as a business, stall their potential for growth to buy back shares now when the current share structure will keep the price in a reasonably fair range for any potential buybacks for them anyways. Just something to dwell on.
-Phil
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