.0436 pps coming soon with possible lower pps befo
Post# of 56324
Posted On: 07/02/2014 3:16:31 PM
.0436 pps coming soon with possible lower pps before any significant bounce.
In a number of my previous posts I have said the share structure seems that it was designed for billions of shares to enter the market prior to license and that the company would lose a significant amount of it's value (prior to license) as PPS drops to new lows. This is mostly due to a lack of investor confidence and understandably so, as the OTC market does not have a sterling reputation for CEO's having shareholders interest at heart. I think it is important to understand two critical components here.
1. the need to capitalize a company, and
2. the need to grow a company.
Item 1 and item 2 may seem like they are the same thing but in fact they are very different. Use of stock to raise capital needs to be balanced with performance otherwise investor confidence in a company diminishes and retail investors pull back to see what happens or move on to other things.
New investors and bigger money will tend to see billions of shares being sold so early in the development stage as no insiders not having confidence in the company and will tend to wait until the shares have entered and fully diluted into the market
I see the recent announcements with RXMB being a good thing in that FITX needs an established consumer base and distribution channel. There needs to be clarification though on M&A/ Auditing/Timelines, etc, this is what I am referring too for item #2 as the need to grow a business.
The objective now seems to be to grow the company, build additional buildings, obtain a license then sell and distribute product(s). Once the M&A is completed, audit is done and license is issued we retail investors will be wishing we had bought up more of the very cheap stock.
There will be plenty of opportunity to set GTC Limit Buy orders and pick up very cheap stock in this pre-license period. It will be difficult to day trade this stock for a while. The PPS will drop, for longs, hold and buy more.
My opinion only.
In a number of my previous posts I have said the share structure seems that it was designed for billions of shares to enter the market prior to license and that the company would lose a significant amount of it's value (prior to license) as PPS drops to new lows. This is mostly due to a lack of investor confidence and understandably so, as the OTC market does not have a sterling reputation for CEO's having shareholders interest at heart. I think it is important to understand two critical components here.
1. the need to capitalize a company, and
2. the need to grow a company.
Item 1 and item 2 may seem like they are the same thing but in fact they are very different. Use of stock to raise capital needs to be balanced with performance otherwise investor confidence in a company diminishes and retail investors pull back to see what happens or move on to other things.
New investors and bigger money will tend to see billions of shares being sold so early in the development stage as no insiders not having confidence in the company and will tend to wait until the shares have entered and fully diluted into the market
I see the recent announcements with RXMB being a good thing in that FITX needs an established consumer base and distribution channel. There needs to be clarification though on M&A/ Auditing/Timelines, etc, this is what I am referring too for item #2 as the need to grow a business.
The objective now seems to be to grow the company, build additional buildings, obtain a license then sell and distribute product(s). Once the M&A is completed, audit is done and license is issued we retail investors will be wishing we had bought up more of the very cheap stock.
There will be plenty of opportunity to set GTC Limit Buy orders and pick up very cheap stock in this pre-license period. It will be difficult to day trade this stock for a while. The PPS will drop, for longs, hold and buy more.
My opinion only.
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