Posted On: 02/10/2016 10:18:59 PM
Post# of 96883
To all Long shareholders, I think we'd all be remiss if we completely disregard the possibility of an RS and here's why. Let me preface my statement with this, I absolutely DO NOT embrace the idea of an RS.
Fact - NTEK continues to dilute but only has 52 million left. In just one year they've added nearly 1 billion shares to the float.
The question is, if they aren't self sufficient to the point they can not only pay bills but also cover the cost of content, then what are they to do? The remaining 52,000,000 shares is only worth about 140-150 thousand dollars.
If you think NTEK isn't self sufficient as noted above, the next question is, will they be if they had an additional 140 - 150k dollars? Probably not? Ok then what do they do?
Another 790,000,000 million shares is equal to $2,133,000 dollars at today's close whereas last time they raised the AS 790,000,000 the value at .035 cents was $27,650,000 dollars; a huge difference indeed.
Last Feb, NTEK raised the AS 790mm knowing that was equal to nearly 30mm dollars. In fact, they only raised a fraction of the 30mm dollars those shares were worth. Ok, knowing dilution would hurt the pps, they raised the AS to more than they thought they'd need.
So you have to ask yourself, if they raise the AS by another 790,000,000 mm shares to a total of 2.58 billion shares at today's closing price, or $2.13 mm dollars, will that put them at total self sufficiency? And remember, that's today's price. We know what happens as they dilute, the price tumbles. So, at the end of the day, they may only be able to raise a few hundred thousand dollars from another 790mm shares.
This a very real scenario...So what do they do?
Option 1....RS 20.1:1 which changes the share structure to 89,054,726 total shares. At the same time it adjusts the share value from .0027(today's closing price) to .054 pps.
The question is why do this? Because if they raise the AS for example 500mm, at today's value(split adjusted) of .054 would be equivalent to $27,000,000.
Keep in mind, if doing option 1 your shares will be cut 20.1 to 1. So for every 1,000,000 shares you owned pre RS, you'd now only have 49,751.
Option 2....Completely stop diluting and grow within their means.
Option 3....Spin UltraFlix.
Option 4....Sell UltraFlix.
So what are they going to do?
And the answer is.......you're guess is as good as mine.
It all comes down to revs during Q4 and up thru today. If the promos and subs raised enough money to self sustain as I HOPE they did, then I think we're in good shape. IF NOT, well then don't count option 1, 3 or 4.
No matter what, they absolutely positively need to be more transparent in their communication with shareholders. No more dangling the elusive carrot and no more answers designed to temporarily appease but lack substance and no more sleight of hand. I can assure you if they maintain the status quo, I fear legal ramifications will add insult on top of injury to the company and it's shareholders.
Atlas1
Fact - NTEK continues to dilute but only has 52 million left. In just one year they've added nearly 1 billion shares to the float.
The question is, if they aren't self sufficient to the point they can not only pay bills but also cover the cost of content, then what are they to do? The remaining 52,000,000 shares is only worth about 140-150 thousand dollars.
If you think NTEK isn't self sufficient as noted above, the next question is, will they be if they had an additional 140 - 150k dollars? Probably not? Ok then what do they do?
Another 790,000,000 million shares is equal to $2,133,000 dollars at today's close whereas last time they raised the AS 790,000,000 the value at .035 cents was $27,650,000 dollars; a huge difference indeed.
Last Feb, NTEK raised the AS 790mm knowing that was equal to nearly 30mm dollars. In fact, they only raised a fraction of the 30mm dollars those shares were worth. Ok, knowing dilution would hurt the pps, they raised the AS to more than they thought they'd need.
So you have to ask yourself, if they raise the AS by another 790,000,000 mm shares to a total of 2.58 billion shares at today's closing price, or $2.13 mm dollars, will that put them at total self sufficiency? And remember, that's today's price. We know what happens as they dilute, the price tumbles. So, at the end of the day, they may only be able to raise a few hundred thousand dollars from another 790mm shares.
This a very real scenario...So what do they do?
Option 1....RS 20.1:1 which changes the share structure to 89,054,726 total shares. At the same time it adjusts the share value from .0027(today's closing price) to .054 pps.
The question is why do this? Because if they raise the AS for example 500mm, at today's value(split adjusted) of .054 would be equivalent to $27,000,000.
Keep in mind, if doing option 1 your shares will be cut 20.1 to 1. So for every 1,000,000 shares you owned pre RS, you'd now only have 49,751.
Option 2....Completely stop diluting and grow within their means.
Option 3....Spin UltraFlix.
Option 4....Sell UltraFlix.
So what are they going to do?
And the answer is.......you're guess is as good as mine.
It all comes down to revs during Q4 and up thru today. If the promos and subs raised enough money to self sustain as I HOPE they did, then I think we're in good shape. IF NOT, well then don't count option 1, 3 or 4.
No matter what, they absolutely positively need to be more transparent in their communication with shareholders. No more dangling the elusive carrot and no more answers designed to temporarily appease but lack substance and no more sleight of hand. I can assure you if they maintain the status quo, I fear legal ramifications will add insult on top of injury to the company and it's shareholders.
Atlas1
(0)
(0)Scroll down for more posts ▼
