i wish everyone would first read the entire sb-2 filing before commenting on it. first,the sec requires that you give an example based on the current market price {which unfortunately is .50 cents} when requesting to have additional shares added to the float. Nowhere in the document does it state that the Company values their shares at $ .50 per share, but was merely using it as an example to meet the SEC requirements. Secondly, has anyone asked the question, how many shares were issued based on the last SB-2 filing? I have. Only a fraction of the 11 million shares estimated in that filing were issued (appoximately 2M). Everyone fails to realize that the numbers used in this SB-2 are only estimates and the Company determines if and when to issue shares after the SEC has approved the document. Could this move possibly be the first step in the Company's rellocating the shares needed to deal with the convertible preferred/"lockup" agreement issue? The significance of the lock-up agreement is that it allows the company the time to add more assets, which in turn increase share price, before it is forced to issue shares based on the previous financings, therefore,LESS dilution. The company is defying all the rules of the BB, and in essence, stopping excessive dilution because they are affording the stock breating room prior to being forced to issue shares. Logically, this would tell me that the stock price is going higher because if the company needs to issue more shares, obviously they are buying more assets to add value to the existing structure. The company must be close to closing on the 16 unit acquisition and possibly more. I am surprised, I see this picture evolving very clearly. The company has taken all the necessary steps needed to prepare itself for future growth. How could anybody view this as being negative? The company has positive cash flow for the last two quarters. They are not issuing shares to pay the electric bill. If they issue shares, they would be buying us more assets and the filings afford them the availability to choose the time when they will issue the shares. For thos amateur investors that feel that " Joe" has let us down based solely on the fact that you don't understand the documents and how the financial market is run, new issues dilute companies too, however they also raise needed capital for for the growth and expansion, ultimately allowing for a larger company to emerge. Negative comments on the thread only tend to feed selling pressure on the stock which will allow the MMs to cover their short positions at cheaper prices and force the company to move slower in its quest to build a larger comapany. I suggest that if you are really that concerned, call Joe. He will talk to every one of you. He has put together a strong management team and its cognizant of the dilution issue and has a significant amount of his own money invested in JOES (nearly 1M) - also based on company filings- must have missed that one:). The news is positive- the acquisitions are coming.
malcom if you could get this on ragging bull it would be a great help. i have been unable to post there tonight for some reason. get the box to wright the message but not able to post.
thanks jeff. |
