God_Father answers many of my concerns:
God_Father
Thursday, 02/15/18 10:13:37 PM
Re: pennylandspirit post# 174560
0
Post # of 174588
Why not wait until Q4 financials bring the price up? Problem I have is in over 20 years in pennyland I have never seen a RS end well
Quite frankly, its not just about raising prices for the sake of it to be on NASDAQ. I'm going to have to take this down to the basics to explain this but follow along and I promise it'll make a whole lot more sense.
1) The main reason a company goes public is to raise capital, this is the fundamentals of investing and the principal the market is based on. It's the tit-for-tat relationship between a company and its shareholders.
2) A company that has reverse merged doesn't have the luxury of raising capital through an IPO where all new shares would be instant capital, in a reverse merger the capital in existence is already there... so how is a company to raise capital to fund their operations?
3) Dilution. The company raises money by selling new shares. However, dilution on NASDAQ isn't stigmatized, name me one blue chip company that has never diluted and I'll call the bluff. The important thing to note is how effective the capital is. If a company can turn the capital raised into profits at a rate higher than what the ownership loss is, then its a very healthy win-win situation. Here's a scenario to consider...
- Company A makes 10 million in profit per year with an OS of 10 million.
- Company B makes 100 million in profit per year with an OS of 20 million, after using the capital from the additonal 10 million O/S to improve its operations and increase profits by 90 million.
Which one is better? Clearly company B, but it had to dilute. And major hedge funds and big time investors understand this concept.
4) The key in all this is that the company dilutes responsibly. Most penny stock companies fail with a R/S because they don't have a viable business, so even though they raise capital, its at the cost of investors. That is why you are clearly in the right be very cautious about pinkies reverse splitting.
So how are we different? JBZY is different in that in the past year of trading, the company has demonstrated they are not interested in profiting off investors. The company could have easily pumped fluff PRs promising us the world while diluting us to smithereens, like you've seen done countless times. Instead, we didn't get a single PR about their operations all the while not significantly diluting. If dilution is to come, I can promise you we will be trading dollars and every share diluted will be 100x more effective for the company as new shareholders will have to pay a premium. These will likely be heavy-hitting Hedge funds, and we will potentially have billions funneled into this company months from now.
Again - all this is very positive to where we are going. Longs can start saying their farewells to the OTC and penny bonehead mentality. We have reached escape velocity and are NASDAQ bound. Consolidated Fins seals the deal, we'll know exactly where we stand days from now. March is 2 weeks away!
The most important thing to note about all this is that we are only at a 25 million market cap, and this is multi-billion dollar valued company based on only the DD we have uncovered. The return on this investment is going to be glorious.
$JBZY
God_Father
Thursday, 02/15/18 10:13:37 PM
Re: pennylandspirit post# 174560
0
Post # of 174588
Why not wait until Q4 financials bring the price up? Problem I have is in over 20 years in pennyland I have never seen a RS end well
Quite frankly, its not just about raising prices for the sake of it to be on NASDAQ. I'm going to have to take this down to the basics to explain this but follow along and I promise it'll make a whole lot more sense.
1) The main reason a company goes public is to raise capital, this is the fundamentals of investing and the principal the market is based on. It's the tit-for-tat relationship between a company and its shareholders.
2) A company that has reverse merged doesn't have the luxury of raising capital through an IPO where all new shares would be instant capital, in a reverse merger the capital in existence is already there... so how is a company to raise capital to fund their operations?
3) Dilution. The company raises money by selling new shares. However, dilution on NASDAQ isn't stigmatized, name me one blue chip company that has never diluted and I'll call the bluff. The important thing to note is how effective the capital is. If a company can turn the capital raised into profits at a rate higher than what the ownership loss is, then its a very healthy win-win situation. Here's a scenario to consider...
- Company A makes 10 million in profit per year with an OS of 10 million.
- Company B makes 100 million in profit per year with an OS of 20 million, after using the capital from the additonal 10 million O/S to improve its operations and increase profits by 90 million.
Which one is better? Clearly company B, but it had to dilute. And major hedge funds and big time investors understand this concept.
4) The key in all this is that the company dilutes responsibly. Most penny stock companies fail with a R/S because they don't have a viable business, so even though they raise capital, its at the cost of investors. That is why you are clearly in the right be very cautious about pinkies reverse splitting.
So how are we different? JBZY is different in that in the past year of trading, the company has demonstrated they are not interested in profiting off investors. The company could have easily pumped fluff PRs promising us the world while diluting us to smithereens, like you've seen done countless times. Instead, we didn't get a single PR about their operations all the while not significantly diluting. If dilution is to come, I can promise you we will be trading dollars and every share diluted will be 100x more effective for the company as new shareholders will have to pay a premium. These will likely be heavy-hitting Hedge funds, and we will potentially have billions funneled into this company months from now.
Again - all this is very positive to where we are going. Longs can start saying their farewells to the OTC and penny bonehead mentality. We have reached escape velocity and are NASDAQ bound. Consolidated Fins seals the deal, we'll know exactly where we stand days from now. March is 2 weeks away!
The most important thing to note about all this is that we are only at a 25 million market cap, and this is multi-billion dollar valued company based on only the DD we have uncovered. The return on this investment is going to be glorious.
$JBZY
