Suzanne, very well thought out post,which I enjoyed reading..To answer your question,unfortunately we have to consider the massive dilution which will hit the company,most probably doubling the outstanding number of shares.(6mm 144 sh,500k 144 shares,34 mm options,additonal shares from convertible debenture conversion,etc) all added to the existing 57.5mm outstanding shares.
Do you feel that the sales of CD's/music cards,less 1% of net-to be paid to the original sellers will be adequate enough to make this company profitable? This in light of the lack of portal deals? Deals cost money,and the company's only access to capitol is through more convertible debt(resulting in even more shareholder dilution).Competition is fierce in this type of business,and the strong will survive,and the weak won't,IMO DD
PS: I'll get flamed for this,but that's not new--I foresee a reverse split sometime in the future,there are far to many shares out,especially when considering the other companies out there competing for investors dollars,IMO. |
