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Doublebogie459

01/27/12 11:54 AM

#11287 RE: realfacts #11283

Very good post! Five stars*****
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oilin07

01/27/12 12:13 PM

#11288 RE: realfacts #11283

...and looking at MWWC's amount of convertibles what is your opinion of its effects on the company?
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dragon52

01/27/12 12:36 PM

#11289 RE: realfacts #11283

One note to think about...

Yes, generally companies sell stock to generate money for start up and operational expense.

Now... once a company has started to get contracts and starts producing orders, less stock will be sold as revenue from these contracts will start to come in and then the fun begins. So it is not necessary for companies to continuously sell stock if they have a viable business that can bring in as much revenue to off set the expenses.
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DRock3284

01/27/12 2:35 PM

#11298 RE: realfacts #11283

I don't disagree with anything you said. I've actually (at some time or another) stated every point you made.

I used the term "loanshark" just to make the point that noteholders are not typical investors or traders; they're not looking to gamble with a possible future price increase, they're going to get paid as soon as they can. I've seen many posts by many people over the years that ask why the note holders wouldn't hold out for a better price. They're not stock holders with an interest in the company or its long term outlook, they're financiers and some of them are more honest and some of them are manipulative dirtbags.

As far as how this company has handled it... I believe that they got about the best deal they could and it was absolutely needed for expansion and growth.