I will have to agree to disagree with you on this
Post# of 56324
Posted On: 04/15/2014 11:22:25 PM
I will have to agree to disagree with you on this one.
If you calculate the number of shares and dollar volume that would have to be sold into the market as a ratio just to support pps and provide minimal return to shareholders calculate the total dollar volume at least X2.5 of total pulled out of the market by insiders. Not that all of the 1.4 billion shares that can be sold into the market between April and September 2014 will happen but just for illustration here; at .05 you would need 175 million in total dollar volume to support 1.4 billion X .05 =$70 million averaged at .05
I might ad that certainly would allow plenty of capital to buyback shares at discounted prices because the selling pressure would make them a bargain. After all, the shares were issued at .001 so look at the upside here. Insider shares already issued at .001, sell into the market at .005, make yourself a new loan (cheap money)/buildout, get licensed and buy back shares as pps nears the SMA200. Not saying this would happen but the existing share structure as it presently exists opens that door.
Let me stress here that it is very likely that a number of the insiders are holding shares to keep majority control and will not be sold into the market. Without clarification though from Bill we just do not know.
I also read mudcats explanation and appreciate his input but find it to be short sighted IMO because it does not seem to match SS as it is presented in the 4th quarter financials. Also, market absorption just to keep shareholders who bought shares between .05 to 011 would require up to 175 million in total dollar volume just to absorb this quantity of shares and keep existing shareholders at roughly par values.
Of course I am using the entire 1.4 issued million shares here to make my illustration and completely understand and agree that this is not an actual number as some of the shares have been issued or utilized for other purposes and share values/volume change daily. Also, shares are routinely used for other purposes such as acquisitions/JV, etc.
This is precisely why share structure is very important to shareholders on this and any other public traded company.
I appreciate your opinion on SS here but respectfully disagree that it still needs to be addressed. If not, and insiders continue selling without allowing time for new investors to buy shares then pps will soon be bouncing off the SMA200 as dilution become readily apparent in the market.
If you calculate the number of shares and dollar volume that would have to be sold into the market as a ratio just to support pps and provide minimal return to shareholders calculate the total dollar volume at least X2.5 of total pulled out of the market by insiders. Not that all of the 1.4 billion shares that can be sold into the market between April and September 2014 will happen but just for illustration here; at .05 you would need 175 million in total dollar volume to support 1.4 billion X .05 =$70 million averaged at .05
I might ad that certainly would allow plenty of capital to buyback shares at discounted prices because the selling pressure would make them a bargain. After all, the shares were issued at .001 so look at the upside here. Insider shares already issued at .001, sell into the market at .005, make yourself a new loan (cheap money)/buildout, get licensed and buy back shares as pps nears the SMA200. Not saying this would happen but the existing share structure as it presently exists opens that door.
Let me stress here that it is very likely that a number of the insiders are holding shares to keep majority control and will not be sold into the market. Without clarification though from Bill we just do not know.
I also read mudcats explanation and appreciate his input but find it to be short sighted IMO because it does not seem to match SS as it is presented in the 4th quarter financials. Also, market absorption just to keep shareholders who bought shares between .05 to 011 would require up to 175 million in total dollar volume just to absorb this quantity of shares and keep existing shareholders at roughly par values.
Of course I am using the entire 1.4 issued million shares here to make my illustration and completely understand and agree that this is not an actual number as some of the shares have been issued or utilized for other purposes and share values/volume change daily. Also, shares are routinely used for other purposes such as acquisitions/JV, etc.
This is precisely why share structure is very important to shareholders on this and any other public traded company.
I appreciate your opinion on SS here but respectfully disagree that it still needs to be addressed. If not, and insiders continue selling without allowing time for new investors to buy shares then pps will soon be bouncing off the SMA200 as dilution become readily apparent in the market.
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