Everyone has to take investment and trading risks. That's a natural consequence of being able to earn and own money. It's your money. You can spend it on yourself, your girlfriend, kids, etc. or choose to invest. If the choice is to invest, the issue is to understand how risk is structured so you as an individual can profit instead of being taken advantage of.
When you examine SAVW the odds are stack in favor of the convertible debt holder and against common shareholders. Obviously there's risk any time money is involved, but it's not really balanced and it's not even close to being in your favor.
I'm not attacking you for holding common shares or even believing in SAVW's potential. I'm merely explaining the underlying reason why management won't perform and that there's no real interest in management (Ike Sutton since he's controlling the debt lever) succeeding since there's no alignment between shareholder and debtholder.
It takes money to operate an assembly plant. $100k/month doesn't do much to dent a $43M shareholder deficit. If you amortize $43M over 30 years, SAVW needs to earn $250k/month just to service and pay down the deficit (not including regular debt, salaries, rent etc. that SAVW will incur going forward). SAVW may earn $40k over 3Q2011, but let's assume it's $150k the math doesn't work in your favor. Every month SAVW earns less than that amount there's going to be dilution.
You don't need to be a genius to figure out that eventually a buy and hold strategy in this stock leads to $0.0001.
Over a 1.5 year period, GOIG was run down by Ike Sutton from $0.061 to $0.0007 today. Every $1,000 invested then is $81 at close of business today. He made money there by taking a $7.5k weekly salary and being repaid convertible debt. Common shareholders paid for it. The same will happen here with different numbers. You can make money from SAVW. The best way to do it and limit your risk is to trade for short timeframes not buy and hold for a big win.
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