I think you're smart to trade it. The company has a history of great promotion and then killing rallies with dilutive financing. And management is extremely well "paid" even during bad times.
On December 9, 2005, the Company’s Board of Directors also approved a one-time recompense payment in the aggregate amount of $1,000,000 for each of Ms. Gluskin and Ms. Perri in recognition of the Company’s failure to remunerate each of Ms. Gluskin and Ms. Perri in each of the fiscal years ended July 31, 1998, 1999, 2000 and 2001 in a fair and reasonable manner commensurate with comparable industry standards and Ms. Gluskin’s and Ms. Perri’s duties, responsibilities and performance during such years.
I haven't checked the filings in a bit but the strike price on the warrants, if I recall correctly, are mixed and have been reduced .82, .60 and I believe some .40's. The 1.60 are warrants connected with just the most recent and probably thrown in to make it look like the stock is worth 1.60.
Don't get me wrong. I think the company has a huge potential and may very well be a big winner going forward. I just think it's smart to trade it on the big moves as they typically use those moves to either dilute or give themselves some nice perks. |
