Replies to post #249054 on SwingTrade Member Forum (SWING)

[Ex Blockman]

She has been and is a beauty for swing trading MikeDDKing! Keep up the great work.

[Knowledge is King]

AXST looks great...except for that balance sheet


I really want to like this one with the great EPS, insider buying, investor presentations, etc. but I just don't see how the company can pay its bills with that balance sheet...unless they dilute massively. As of 9/11, the working capital deficit was almost $13M; as SSK pointed out in this unremarked-on post

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=68562681&txt2find=axst


it would take about 10 quarters comparable to the 9/11 quarter just to get the current ratio back to about one again.

I think it's probable that the company's recent higher profile via PRs and investor presentation is a glorified road show for an immense secondary offering of shares. At, say, $.30/share I estimate that they'd have to issue almost 40M new shares just get shareholder equity above zero and have $$$ to pay liabilities over the next 12 months.

Can you envision a scenario where we don't see massive dilution from AXST near-term?