Posted On: 01/20/2014 2:42:00 PM
Post# of 11899
Re: Leverage102 #11703
Levs, thanks for posting that evidence.
Yes, it seems clear that the O/S did NOT increase at all during this latest rise in PPS and volume.
It is possible though that the float increased by way of common shares sold into the market place by IronRidge.
However, until we get the latest float metrics in filings (which should be coming soon I imagine) we can only speculate.
I think it is clear that from March 2012 when Allinder became CEO to now, the O/S grew by 2B shares but also the balance sheet went from having no assets and over $700k in debt to now $1.2M in receivables, $300,000 inflow of capital from IronRidge, NO DEBT, inventory of cannacig/cumulus (product), audit funded, HexCorp (for new product design) funded and new product soon to be launched. That level of shareholder value appears to have been worth 2B shares, BWDIK?
Also it seems clear that at last count the public float was just over 500M shares, and if we assume IronRidge is holding just about 1.2B shares then what has not been accounted for since March 2012 is only about 800M shares. If you imagine that those shares have been churned by IronRidge and entered into the public float then the public float could well be around (500M+800M) = 1.3B shares currently. If we use the 50-day moving average as a PPS and use 800M as the shares which have entered the public float, then it represents about $320,000 of capital, which low and behold is roughly the sum of money IronRidge has since pushed into this company ( six tranches of $50k/month ). It all seems to make sense and work out, though investors should do their own DD and come to their own conclusions.
So in judging these metrics, both the level of total dilution versus the change in the health of the balance sheet and company fundamentals, what are investors really looking at right now in regards to the valuation of the company and what positive and negative consequences have occurred from the past dilution? Well, assuming the share price declines of the past two years have not affected their own investment, then we followers are looking at a company supposedly on the brink of getting the big chill removed, audited financials, new upcoming game changer product to go into production and be launched very soon, uplisting and potential other game changing developments like acquisitions. After all, it has effectively become a holding company, eh?
The company has a long-term funding deal in place with $50,000 per month inflows, but also likelihood of further dilution of the O/S of which already has a gigantic 5B A/S. It's not all rosy but it's not all bad either, IMO.
Most of the other OTC stocks in this sector have market capitalizations which are many tens of millions of dollars. RFMK has a market cap of $2.5M. If we assume a standard typical P/E of 25, then to justify the current PPS, the company needs to earn about $100,000 this year. Can they do it? Well, if we assume each unit sells for roughly $100, then they need to sell 1,000 units this year, which is on average about 2.5 units per day. Hmmmm, is that possible? I will leave it to the reader to make their own conclusions on how likely it is for a company planning on ultimately doing national advertising campaigns and ecommerce as well as nationwide store locations to reach selling under three units a day.
AIMHO, of course.
Difficult to see, the future is.
GLTA
$RFMK
Yes, it seems clear that the O/S did NOT increase at all during this latest rise in PPS and volume.
It is possible though that the float increased by way of common shares sold into the market place by IronRidge.
However, until we get the latest float metrics in filings (which should be coming soon I imagine) we can only speculate.
I think it is clear that from March 2012 when Allinder became CEO to now, the O/S grew by 2B shares but also the balance sheet went from having no assets and over $700k in debt to now $1.2M in receivables, $300,000 inflow of capital from IronRidge, NO DEBT, inventory of cannacig/cumulus (product), audit funded, HexCorp (for new product design) funded and new product soon to be launched. That level of shareholder value appears to have been worth 2B shares, BWDIK?
Also it seems clear that at last count the public float was just over 500M shares, and if we assume IronRidge is holding just about 1.2B shares then what has not been accounted for since March 2012 is only about 800M shares. If you imagine that those shares have been churned by IronRidge and entered into the public float then the public float could well be around (500M+800M) = 1.3B shares currently. If we use the 50-day moving average as a PPS and use 800M as the shares which have entered the public float, then it represents about $320,000 of capital, which low and behold is roughly the sum of money IronRidge has since pushed into this company ( six tranches of $50k/month ). It all seems to make sense and work out, though investors should do their own DD and come to their own conclusions.
So in judging these metrics, both the level of total dilution versus the change in the health of the balance sheet and company fundamentals, what are investors really looking at right now in regards to the valuation of the company and what positive and negative consequences have occurred from the past dilution? Well, assuming the share price declines of the past two years have not affected their own investment, then we followers are looking at a company supposedly on the brink of getting the big chill removed, audited financials, new upcoming game changer product to go into production and be launched very soon, uplisting and potential other game changing developments like acquisitions. After all, it has effectively become a holding company, eh?
The company has a long-term funding deal in place with $50,000 per month inflows, but also likelihood of further dilution of the O/S of which already has a gigantic 5B A/S. It's not all rosy but it's not all bad either, IMO.
Most of the other OTC stocks in this sector have market capitalizations which are many tens of millions of dollars. RFMK has a market cap of $2.5M. If we assume a standard typical P/E of 25, then to justify the current PPS, the company needs to earn about $100,000 this year. Can they do it? Well, if we assume each unit sells for roughly $100, then they need to sell 1,000 units this year, which is on average about 2.5 units per day. Hmmmm, is that possible? I will leave it to the reader to make their own conclusions on how likely it is for a company planning on ultimately doing national advertising campaigns and ecommerce as well as nationwide store locations to reach selling under three units a day.
AIMHO, of course.
Difficult to see, the future is.
GLTA
$RFMK
(0)
(0)Scroll down for more posts ▼
