Most r/s kill shareholders of penny stock companies. I wrote several posts about companies which have been successful. If I recall, the similarities were relatively low r/s, not the typical 1/100 or worse that is so often the case, and which are accompanied by rapid dilution and dumping of shares.
I was skeptical here, have been, and continue to be, but I am long for the reasons I mentioned in my prior posts. IF, and that's the big word, "IF", management decides that it has already done as much as it wishes for now with dilution and dumping, and decides, whether for its own selfish interest or because they are actually following their fiduciary duties to shareholders, to concentrate on the business plan as promised, then the dilution and dumping phase may have changed course with the relatively low reverse split.
Most of those who fear reverse splits probably sold before the actual split. Most of the penny stock scammers don't give much advance notice so you see huge tanking AFTER the reverse split. In this case, we knew about it long in advance. I sold some, but then bought at lows when people were dumping in panic. I had plenty of time to trade if I wanted to and made what now looks like some good moves.
I'm still skeptical but willing to wait and watch. The panic selling seems to have happened BEFORE the r/s. So far, management is not dumping post this reorganization. It's in their own selfish interest to get the price up significantly. They have lots of cheap shares and options or warrants. They will be looking to cash out in a couple of years. Beyond that, they do have fiduciary duties to their employers, that is the shareholders, to maximize the share price.
IF (key again) they cut the dilution and dumping, then we can focus on the business plan. So far, almost no results have been verified. The attraction here is that if only one of the biggies come through, this could be a huge multi-bagger. They seem to have some good people and contacts and they clearly have incentive to put together something that gives them huge gains in their own holdings.
So - I wouldn't advise anyone to buy here if they are the type that needs to have "proof." Proof means a higher price. Uncertainty is for speculators like myself. For those that need "proof," wait for the proof to come and a share price of .50 or so if they have actual revenue streams in the multi 10's of millions of dollars.
All my opinion - and my take re the current share price. |
