I don't think an RS would be wise just yet. There
Post# of 11107
Posted On: 06/24/2014 1:32:42 PM
I don't think an RS would be wise just yet. There is not enough support to hold the pps from sliding back down. The only way an RS is palatable right now is if the company has the cash ready to buy back shares and thus hold the pps at the post RS point whilst buying back the OS.
It does seem curious to me that we are having these technical difficulties. I suspect that this is related to paying bills. It has happened to me a few times when I was running a startup. Some details go unnoticed unfortunately. They are so swamped with the new business opportunities they are chasing, sending out certs and fighting legal battles that sometimes it gets difficult to do the admin stuff.
In the big picture, I think we could see more dilution before we see an RS. I think we will see dilution for at least one more quarter as whatever business opportunity we are chasing finally comes to fruition. From the Q&A, it looks like Ferry service will be our first significant revenue opportunity. i would assume we will dilute until the first day of the maiden voyage. I am sure we will borrow money against the escrowed ticket funds to pay for operations, but, the admin expenses will continue to pile up. Also, I suspect we will have a few more legal expenditures as we continue to work out the debts.
Once we have a revenue stream, things get easier. Bills get paid, plans get made and new opportunities come on line. I believe we will see a few quarters of growth and profit after which an RS would be a wise decision in an effort to stabilize the pps. Doing one right now will only hurt everyone. Besides, companies that RS their way out of the trips always find their way back because the RS, in those cases, are means to raise cash and not raise market capitalization.
JMHO, of course.
It does seem curious to me that we are having these technical difficulties. I suspect that this is related to paying bills. It has happened to me a few times when I was running a startup. Some details go unnoticed unfortunately. They are so swamped with the new business opportunities they are chasing, sending out certs and fighting legal battles that sometimes it gets difficult to do the admin stuff.
In the big picture, I think we could see more dilution before we see an RS. I think we will see dilution for at least one more quarter as whatever business opportunity we are chasing finally comes to fruition. From the Q&A, it looks like Ferry service will be our first significant revenue opportunity. i would assume we will dilute until the first day of the maiden voyage. I am sure we will borrow money against the escrowed ticket funds to pay for operations, but, the admin expenses will continue to pile up. Also, I suspect we will have a few more legal expenditures as we continue to work out the debts.
Once we have a revenue stream, things get easier. Bills get paid, plans get made and new opportunities come on line. I believe we will see a few quarters of growth and profit after which an RS would be a wise decision in an effort to stabilize the pps. Doing one right now will only hurt everyone. Besides, companies that RS their way out of the trips always find their way back because the RS, in those cases, are means to raise cash and not raise market capitalization.
JMHO, of course.
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