I agree that share structure is certainly relevant
Post# of 56324
Posted On: 04/15/2014 10:20:47 PM
I agree that share structure is certainly relevant. However, I personally don't pay a lot of attention to share structure because penny stocks tend to move more with positive news, momentum and future potential, rather than purely technical based on these structures from my experience.
The factors at play here that will throw off any projections are the facts that:
1) Bill has already stated he is planning on a share buyback. The question is when, and how many shares. My guess is after we are cash flow positive with large harvest revenues pouring in. That could quickly eliminate a large part of the share structure instantly and rocket share price upwards. Share cancellations or retirement could also be at play.
2) Bill has stated no more dilution is planned. As far as restricted shares coming off, this has been discussed repeatedly. Mudcat18 put together a great analysis showing how it will likely have little impact, especially after inspection and license approval. Many of them have already been unrestricted and it appears to have had minimal impact. The red days are across the board in MMJ stocks the last couple weeks, and we are by no means an exception. FITX is actually one of these that has had much less of a drop compared to the majority of them. So, we've actually been staying at these levels quite impressively in my opinion, and that suggests minimal selling of restricted shares, along with confidence in the company and their success.
The factors at play here that will throw off any projections are the facts that:
1) Bill has already stated he is planning on a share buyback. The question is when, and how many shares. My guess is after we are cash flow positive with large harvest revenues pouring in. That could quickly eliminate a large part of the share structure instantly and rocket share price upwards. Share cancellations or retirement could also be at play.
2) Bill has stated no more dilution is planned. As far as restricted shares coming off, this has been discussed repeatedly. Mudcat18 put together a great analysis showing how it will likely have little impact, especially after inspection and license approval. Many of them have already been unrestricted and it appears to have had minimal impact. The red days are across the board in MMJ stocks the last couple weeks, and we are by no means an exception. FITX is actually one of these that has had much less of a drop compared to the majority of them. So, we've actually been staying at these levels quite impressively in my opinion, and that suggests minimal selling of restricted shares, along with confidence in the company and their success.
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