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Andrew John

10/05/12 1:26 PM

#23125 RE: Celtics2011 #23124

celtics
DSTI has absolutely NO BUSINESS / OPERATIONS. A non-revenue generating company with no business on the horizon usually means there market cap will equal their liquidated value.
according to DSTI last 10Q, they claim $13 million in assets and $10 million in debt. $12 million of that 13 million is in property and equipment, however $7 million of their property and equipment is depreciated since december, which means that by the end of this year (2012) there $12 million will probably be worth $5-6 million.
as for there debt, they owe a lot of money ($10.5 million) which means they will have to issue stock at a major discount to market to pay off that debt.
Then consider that more than 5 million shares are hitting the market as soon as there S3 is effective, all of which means significant dilution. Moreover, the debt holders of that $10.5 million will be forced to accept DSTI stock and that means they will sell until they rec.oup there money.
Then consider that DSTI bought MM $15 million in debt, which means MM probably got shares of DSTI and he will sell.

As for SLMU - If I owned SLMU right now, I would rather keep my SLMU shares and 'hope' that the 2 funds take over the company, kick out MM and they do not dilute the company either through an offering (capital raise) or issue shares to management at enormous levels.

I am of the opinion that SLMU has more of a future than DSTI. In fact, If I owned SLMU, I would not give-up my SLMU shares for DSTI, but keep in mind a few things have to happen for SLMU to have a good chance.

DSTI in my opinion is worthless.
In fact, if I owned SLMU I would NOT accept any amount of DSTI shares through a share exchange agreement.

I have no idea what Nalley is teling investors
I have no idea what MM is thinking or doing
But I do know that the share exchange agreement can not proceed...any one that disputes it is either being lied to, lying to him/her self, or just doesn't understand how these types of deals work.

I would urge all to consider: SLMU, DSTI and NALLEY have told you many things in the past. NOT ONE (1) of those things has been true.

I have told you, starting in August (when I did own shares) that the share exchange agreement was not going to happen, only MM was going to get DSTI shares, and there so-called contracts were not going to generate revenues. The only revenue generated to date was in SLMU, but that was from the Arise Technologies acquisition, which thoretically belongs to the 2 funds because a a judge (in a court room) ruled in favor of the 2 funds, and against SLMU and MM

believe what you want about a share exchange agreement, but be very careful:
1. SLMU as of today has the most upside based on the information I wrote herein...this does not mean I think SLMU stock price will go up. I need questions answered.
2. DSTI has a great deal of debt and absolutely no business or operations
3. Who has been right and accurate so far: ME or SLMU, DSTI or NALLEY