Penny traders obsess over R/S because the only r/s they know is when a company doesnt have fundamentals to support pps and so pps falls after r/s for same reason it was falling before.
Thus the objective to achieve positive net income before r/s so can support pps and also eliminate specter of dilution -except for acquisitions which bring a positive ROI.
Thats what pihn is trying to do-achieve substantial net income via a profitable acquisition so the company can get the funds it needs to grow and if necessary concentrate on the new business.
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