Replies to post #74093 on Bravada International Ltd (BRAV)

[solar fusion]

You must be kidding! Penny stocks do it all the time.

[PhilipDrummond]

OK. Danny has been limiting dilution. It has been 4 months now. Dilution was brought up recently that in order to open a third store he will have to dilute. That is not necessarily true an I really hope he DOES NOT dilute. There are other means available that he can use to open another store. Do I think the timing is right to open another store? Not necessarily. I would like to see better sales at the current stores before putting more money into another store. The are so many possibilities with the online stores and I would like to see worldofleggings.com in full operation very soon. As far as preferred shares go, I don't see anything to worry about there.

[Beezerr34]

It affects us more than him and his preferred or the ability to issue himself new shares at a later date.

This is simply not true. Danny's preferreds are highly restrictive, and are affected by dilution exactly the same as every common share. Also, Danny can't just "issue himself more shares." He would have to convert another portion of his shareholder loan in order to get more shares, and in that case, his deferred salary is what is paying for the shares.

I am thrilled with how well the company is doing. I am amazed at the growth that we've seen/are seeing. I am extremely happy that the company hasn't diluted for four months and is cash flow positive. I am VERY disappointed with the PPS and how undervalued this company is. With that said, I am very much against dilution anywhere near this PPS for expansion purposes. In the past dilution was NECESSARY to keep things going, and was, most likely, the only option. The company has advanced and progressed well beyond that point and is now significantly undervalued. The company now has options as to how/where it wants to expand and how to finance that expansion. Dilution for expansion at a fairer PPS is one thing, but dilution anywhere near this PPS to facilitate optional expansion should be avoided; another option should be pursued. This company is succeeding and maturing very quickly, and it might take a while for the PPS to catch up; until that happens other options should be explored. Just the fact that this company has matured to the point of even having other options is absolutely fantastic, but diluting down here is analogous to buying back shares at $.25. It simply doesn't make sense. Anyway, I'm just completely disgusted by the fact that, on a current annualized basis with no growth rate, this company is selling $4M worth of 75% gross profit margin product, and it is trading with a $3.7M market cap. *Slams head on desk*