Obviously FAMH could do so, but they just completed a 504 offering
and they didn't increase the outstanding shares to do it. There used
to be only 2-3MM in the float, now there are 7MM, but the total
shares outstanding shares stayed at 20MM.
In other words, since this company is highly profitable and just finished
a special stock placement to get capital for expansion and aquisitions
I don't think we need to worry about the number of outstanding
shares increasing.
I also believe Cheryl spoke to the company and they said they had
no intention of issuing additonal shares in the foreseeable future...
Cheryl?
The reason I have sold all my penny stocks to buy FAMH is because
they are making money. They aren't coming out of bankruptcy. We
aren't praying they will be able to bring some sexy, futuristic product
to market before they go broke from R & D costs. Unlike most penny
stocks, they aren't in need of huge captial while they try and move
from a development stage company to an operational company.
Granted it isn't as fun to talk about at parties... not like owning stock
in a laser company or a company working to build cities on Mars.
FAMH is, however, in a highly profitable, low overhead industry.
They have been operating successfully as a private company for
19 years and I believe only went public to get the capital to expand
further.
Anyway, after all this rambling I guess the answer to your question
is "Why would they do that?". Seriously, if you look at what they are
trying to do, ie: become a reporting company in the next few months
and move to the NASDAQ sometime next year (which will require a
price of either $3 or $4... there has been some debate...) they will not
do anything that will hurt the stock price. They also have their the
institutional investors who are evaluating this stock to consider.
IMO, the ONLY thing keeping this stock from being a $3-$4 stock
(they certainly have the earnings for it!) is the lack of audited financials
and a 10K. Both of which the company is working on solving right
now. |
