Let's look inside the numbers...
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Outstanding Shares: 2,300,000,000 as of 2005-12-07
Estimated Market Cap: 14.72M as of 2005-12-06 (based on Outstanding Shares as of 2005-12-07)
Authorized Shares: 5,000,000,000 as of 2005-11-21
Float: 690,000,000 as of 2005-12-07
Number of Shareholders of Record: 5,000 as of 2005-12-07
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Outstanding Shares: 3,727,740,100 as of 2006-01-31
Estimated Market Cap: 27.212M as of 2006-02-01 (based on Outstanding Shares as of 2006-01-31)
Authorized Shares: 5,000,000,000 as of 2005-11-21
Float: 2,304,576,805 as of 2006-01-31
Number of Shareholders of Record: 5,000 as of 2005-12-07
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Notice that the outstanding has increased by 1,427,740,100 shares (62%). But to be truly dilutive, they'd have to hit the float. Surely most of those shares are still in the proverbial strong hands, right? I can't believe I'm saying this, but something just has to be wrong with the numbers for the float. 2,304,576,805 - 690,000,000 = 1,614,576,805 -- a 234% increase! That means, theoretically, every single newly authorized share was dumped... and then some... all in the past month... during the time the company was touting a share buyback period. That's Dilution with a capital "D". If those shares were issued to pay for acquisitions, given that the PRs claimed all related financing would not be dilutive, that's Fraud with a capital "F".
To make matters worse, we have people like Hollen running around telling everyone it's naked shorts. And the sheep believe it. How sad.
- Jeff |
