The following comment, recently contained in a post by Barclay Donaldson is interesting, especially considering the points of prior posts concerning revenue sources, contract/license/vs P.O. /EDI and the debate over the number of outstanding shares and dilution.
("The longer it takes,the more new shares that will hit the market to pay down the debt.")
OBSERVATION:
Firstly: ACII performance appears to be moving in the right direction, ie: break even. How ever this is being accomplished revenue wise is providing many posts and conversation but never-the-less indicates to me that management is handling it well, with a focus on earning per share. Inherent in this break-even point performance is a win/win/win situation. It pays the bills, takes pressure off dilution and underwrites the time needed to put LACC on the map. While it may not be the brass ring it assists in reaching it. Not many developing companies are in this kind of position.
Lastly: I am of the opinion that ACII is doing what it can to avoid further dilution and focus on earning per share. The type of dilution I do see is in one of its better forms: debt pay down. Looking at the last 3rd quarter report August 31 2007, outstanding shares were listed at 136,100,172 which was increased by 20,000,000, bring it to 155,718,791. The 20,000,000 was for debt reduction, yes, but I do not see this with great concern, because it is has value, received as an acceptable form of payment and it has mitigating/offsetting effects on earning per share. To any extent ACII can increase its earning per share, its pps, and further this debt pay down only improves ACII. Its positively exponentially synergistic.
boundtb |
