Posted On: 06/05/2014 2:02:49 PM
Post# of 3844
If i'm not mistaken profits will be reinvested in growth so I doubt that he'll use that money to pay off bills. Hence dilution will be needed for the time being. Martie expects $2 mil revenue this year from these two operating facilities & no matter which profit margin he has that is simply not enough to pay the Current Liabilities, in this, or following Quarters. He would need to have $20 mil gross each Q to pay off $5 mil (with 25% profit margin).
We only have to look at the OS at the beginning of this year to know how much he sold, and if we look forward there will be more shares added to the OS. He's still in the startup phase & companies like that need alot of money to build their business. No secret here, as we all know where that operating cash is coming from. I have no problem with dilution, as long as the money is put to good use, which I think is the case with EWSI, but what I don't like is change of policy regarding the OS #'s.
I always deemed that as a positive that Martie updated the OS each month, regardless of how many shares he sold. This is quite rare in the OTC so kudos to him for that! But the fact that he stopped updating the OS could be an omen for things to come. I said "could be", because it might be a glitch, or someone forgot to update the most recent OS #'s, but if that isn't the case it will be frowned upon. The overall sentiment in the OTC when they see something like that is that more dilution is coming our way. If he removes the OS #'s in conjunction with gagging his Transfer Agent I think I know enough...
Too early to cast any judgment but the signs are there.
I just emailed their TA to see how responsive they are.
Empire Stock is usually cooperative when you enquire for SS #'s.
http://www.otcmarkets.com/research/service-pr...filterOn=6
I'll also email the company and see what they have to say. I'll report back... good or bad.
We only have to look at the OS at the beginning of this year to know how much he sold, and if we look forward there will be more shares added to the OS. He's still in the startup phase & companies like that need alot of money to build their business. No secret here, as we all know where that operating cash is coming from. I have no problem with dilution, as long as the money is put to good use, which I think is the case with EWSI, but what I don't like is change of policy regarding the OS #'s.
I always deemed that as a positive that Martie updated the OS each month, regardless of how many shares he sold. This is quite rare in the OTC so kudos to him for that! But the fact that he stopped updating the OS could be an omen for things to come. I said "could be", because it might be a glitch, or someone forgot to update the most recent OS #'s, but if that isn't the case it will be frowned upon. The overall sentiment in the OTC when they see something like that is that more dilution is coming our way. If he removes the OS #'s in conjunction with gagging his Transfer Agent I think I know enough...
Too early to cast any judgment but the signs are there.
I just emailed their TA to see how responsive they are.
Empire Stock is usually cooperative when you enquire for SS #'s.
http://www.otcmarkets.com/research/service-pr...filterOn=6
I'll also email the company and see what they have to say. I'll report back... good or bad.
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