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Technology Stocks : ACII - AmeriChip International, Inc.
ACII 25.24-0.2%3:34 PM EST

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To: rushlong who wrote (4451)8/10/2007 8:26:39 AM
From: rrufff   of 4616
 
The bottom line in "trust factor" for a stock such as this, is with the capital structure. It's way more important than the business plan, and, exponentially more important than the "promised" business plan.

The history is poor in this regard. The r/s gives them a chance to redeem themselves and create some shareholder goodwill, which could lead to money for management and gains for shareholders.

So far, they've been able to keep the price stable and that's unusual for r/s companies. Normally, a r/s PR leads to an IMMEDIATE tanking of the share price. Why has ACHI done better than its peer group of r/s diluters? That's because they have turned off the spigots of dumping and diluting for now.

IF, and that's a big 2-letter word, they continue to hold off on dilution and dumping, THEN shareholders will likely make money. That's a very simple statement and doesn't require genius or complicated analyses. But, it's the only thing you can say for sure on this one and the primary reason to buy the "story" or not to in my opinion.
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