The only thing GIFS is selling is a load of hype. I'm not sure $100 million will = $5/share. It's obvious that shares are being dumped on the market. Shares, shares shares! That's all I hear. Secondaries, private placements, 5% stock dividends, stock swaps, (who knows maybe some Reg S also). After all is said and done GIFS may have 100 million outstanding. That would make this bogus offer worth $1 share. Pay close attention next time GIFS releases earnings. See if they list current shares outstanding. They didn't in their last report. In fact they didn't break down any of their results in the news release. They just said something to the effect of .04/share and all operations were profitable. Yeah, maybe all operations are profitable on an operating basis before taxes, interst expense, charges, (whatever). Also if GIFS want's to get on the Nasdaq or Amex so bad why don't they buy some piss poor company already listed there. It's much easier than F****** around with applications and $3/share requirements. I've got more to say but I'll save it for later since I am running on.
Just remember the market always reflects the true situation. Don't fight the tape. |
