Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : TSIS: WHAT IS GOING ON? -- Ignore unavailable to you. Want to Upgrade?

To: Tobasco who wrote (3011)	7/7/1998 9:14:00 AM
From: jmt	Read Replies (2) \| Respond to of 6931

>>>The sale of stock that is already outstanding would not be dilutive, whereas true sales "out the back door" would be if it is previously unissued or treasury stock.<<<< In the April 30 financials, 9 month statement of financial position (cash flow), a total of $2,001,906 was raised from the sale of new shares (or shares from Treasury). If we uses $ .50 per share, that is just over 4M new shares outstanding, which ties to the increase you noted. Also on the same statement is a receivable for "stock subscription). Clearly in the 9 month period the company has sold shares to finance operations, and given the limited cash balances, it is unlikely they would have had the ability to repurchase (add to treasury) on the open market. This was not a third party sale unless they are flowing through another conduit. As these statements are for 9 months, it cannot be determined whether this practice was halted in January. Concerning the sale of shares, the company has made a decision to finance their growth with equity vs debt. This is a conservative approach and provides debt capacity as required in the future. Dilluting earnings with additional shares vs reducing earnings with interest expense (which provides a tax deduction) but limits future capacity. The company needs capital to get the sales force in the field and generate revenue. And revenue = earnings = higher stock price which will reduce the dillution for future equity offerings. Good luck and profitable investing. jmt