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fellowshort1

07/06/12 2:19 PM

#39866 RE: flaflyersfan #39852

This has no bearing on my post.... I don't know what you are trying to say. The company needs cash, and they are using the issuance of common stock to get more cash. (otherwise known as dilution) With that they continue operations. If they have no cash then they go bankrupt.

What you are saying about losses in the company is called rolling it forward. The advantage of rolling forward losses is that when you end up net profit, you can write off past losses as an expense.

I also don't know what you mean as the dynamics of a penny stock, every publicly traded company is subject to the same regulation and accounting practices as the next. Otherwise they would be taken off the publicly traded market by the SEC or frozen until they meet GAAP standards.

Chart Analysis for any of the statistical information to be relevant must have certain constants. The main constant is outstanding shares. Mainly because outstanding shares reflect how many shares have been issued. That reflects market cap which reflects how much the company is worth. Now chart analysis helps you determine where the pps is going to go in the pps. If you don't have set base number then market cap cannot accurately be determined thus pps cannot be determined. Hence chart analysis goes out the window.