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Andrew John

10/04/12 1:39 PM

#23112 RE: Celtics2011 #23111

celtics
investing in a company because a 'bounce' may occur is not a good enough reason.

96.2% of OTC companies decline on average per year. That number is factual, so what it means is a 'bounce' may in fact occur, but the declines are usually faster and never come back. If you follow the trading of SLMU today, the sell orders are NON-STOP. This decline will probably keep going.

To make matters worse, the 2 funds (may, but I am not sure) be given SLMU stock which they have the right to sell. They will continue to receives shares of SLMU for an indefinate period of time, which means they will keep selling. They have no cost basis because the stock is being issued to them for the debt, which means they get it for ZERO, and will sell into the market regardless of the price. They will NEVER be given or have possession of more than 4.9% of the common outstanding, but as soon as they sell their holdings, they will be given another tranche and they will be able to sell into the marketplace. That will result in a constant and precipitous decline in stock price.

As for DSTI making a statement that they may revisit the share exchange agreement in the future with SLMU. I say if they could've done it, they would've.
The share exchange agreement never had a chance prior to the lawsuit. Now with the lawsuit and share price where it is for DSTI and SLMU, it has no chance.