TopDog asked me a great question that I thought I would just post my response publicly. It concerns all shareholders and these are just my own opinions on the matter.
"EY what are the top 3 or4 things that we will bennifit from having the 10k done"
I think there are many great positives to having the 10K in our hands and those fundamental positives for investors will all serve to turn sentiment more positive and to increase confidence which is really what is needed in order to get investors off the sidelines and actively buying the stock. That locks up the float eventually and prices soar causing a virtuous circle. The factors that lead to this confidence and better sentiment about the company are :
1) Transparency
2) Certainty
3) Trust
4) Insight
5) Allows larger investment managers to invest
.... etc .....
Transparency is the key, it increases confidence by allowing investors to look under the hood so they feel better about where their money is going. It never feels good for an investor when they throw their money into a black hole and they have no idea how their money is getting used so they pull back and quit providing capital. Certainty is key for investors, if there is more clarity for the future then they invest more heavily. Certainty about where the company stands financially, operating cash, specifics on operations can give investors a clearer picture of the immediate future and so with certainty comes more investing. The 10K also provides investor confidence by way of trust, because if official auditors and the SEC give a thumbs up to the companys financial and internal stats then as an investor you can trust that the corp is on the up and up, this trust allows investors to feel better about providing more capital because they know they are not just giving their money to some unknown people who could just be a fly by night operation. Insight is given to investors through the 10K by way of all the details of operations and the way the corp makes money and the nature of their business and so better clarity on the inner workings of the mechanics of the real business give investors insight into how it operates and so by having more knowledge about the business it typically allows them to move heavier into an investment because they have a clearer vision as to how they are really putting their money to work. A 10K is also needed to bring on larger investors and investment groups. These firms have minimum requirements for investing in companies and a 10K lifts RFMK into a higher echelon of investment vehicles and so it opens up the investor pool. With larger investors able to make an investment into the company, the corp has more capital for operations which increases the chances for a successful business.
There are many other factors and ways to look at how the 10K brings about increased investor sentiment and to bring increased confidence in the company and management, but I think simply transparency is the key for shareholders. We can understand stock market volatility, stock performance up and down, we can deal with delays and dissapointments, lowered sales and revenue expectations, dilution if it means closing out existing debt and bringing in new capital, bad arrangements with toxic funders dumping on the stock, stagnant business because of legal or other barriers; we shareholders can accept and deal with a lot. However, I think one thing I have always said we cannot deal with is a lack of transparency. In order to invest in anything and provide capital to a public corp, investors MUST have transparency. In my mind, the clarity of transparency is a requirement in order to put hard earned money to work by handing it over to management. Otherwise, how do we know where our money is going and what it really is getting used for? Without official filings, investors have no real way of knowing where their investor dollars are going and as investors it is usually the best strategy to always assume the worst, so by that logic, with no reporting, investors must assume that their money is just being thrown down a bottomless pit; and that typically does not happen for very long until the investor just quits buying. With an official report, investors can then see where their money is going and how the corp is really using it and that can lead to greatly increased sentiment, trust, clarity and confidence which typically leads to much higher levels of investment into the company.
GLTA
$RFMK!
