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Microcap & Penny Stocks : Microcap Potential Homeruns--Credible, and Reporting

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To: NAG1 who wrote (908)6/12/2012 12:53:31 AM
From: Ted M  Read Replies (1) of 1056
 
Agree. Never like dilution. We never can know how these things will play out. IF the company does well with the new infusion, then we should not expect the holders to convert below their conversion price. So, what's the downside? Almost nothing.

We can hope they are long-term holders who have no intention on selling shares until the stock is well over 50 cents a share...But, they may well be in it for a short term double or so.. In both cases, it's better than our current .05.

Mostly likely worst case is it holds price in current range for a while. My 'relief' is that it was not sold at a variable pct discount to market prices--death spiral because then the stock can be shorted and pushed down so they can convert more shares and the cash in bigger when they cover the short.. Here the price is fixed so they don't want the market price to go below .04 and have every incentive to see it higher..please correct any flaws you see in my thinking..

If Viscount has a homerun product then the market will be willing to value the company accordingly once the proof starts coming in.. This may mean a valuation of $50 million or more, which even at 100 million shares, would be a share price of 50 cents a share..
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