Yes, I agree, my sentiments, exactly. I think tha
Post# of 11899
Yes, I agree, my sentiments, exactly.
I think that the dilution was absolutely necessary and well thought out and properly planned and that if done right can bring decent shareholder value over time via using the operating capital to expand the business or get the ball rolling. However, like you said, at some point dilution in excess brings about diminishing returns and must come to a stop, as pushing the envelope for too long and too hard will catch up with the stock, like you stated, and the pps cannot sustain itself with further dilution. I think we are at a decent share structure and the company raised enough capital to complete its current business plan at this point, so I think management should quit the dilution for good and remain just under the 1B O/S level. I think a campaign to continue dilution through the halfway mark of 1B share O/S would utterly destroy any investor confidence that still exists.
I think too though that many do not mention or discuss the market mechanics in so far as the MMs and insiders gaming ahead of time the knowledge that the T/A is updating the SS because of company dilution and dump ahead of it or plan to manipulate the pps lower in anticipation of being right directionaly because of the foresight that selling power will overwhelm buying power in the immediate future. This causes an artificial tankage of the pps either by insiders dumping or MMs dumping and manipulating the pps down with daily shorting and covering any small bids so that once the massive selling finally comes into the market by way of the company looking to sell those newly issued shares, the pps is already drastically lower and the chart is already falling so it is that much more difficult to find buyers of those shares so the price goes even lower, a compounding effect, and so the company dumps millions of shares at extremely depressed prices to MMs and market participants and players, then these participants just turn around once its all done (after only giving the company a relatively small amount of money for all those shares) and they manipulate the price up with incredible volume, sometimes even paying for stock pumps (marketing) and getting in day traders etc, the volume and price spikes and they dump all of their millions of cheap shares on retail investors thinking that some major move is happening and they need to be in on it. The move is happening, but only so the market manipulators can liquidate all of their gigantic cheap positions for hordes of cash from retail investors and traders. Then flush with cash, the MMs turn around and begin heavily shorting and dumping the last few shares they have in inventory at cheaper and cheaper prices, stopping out all of the current bids and the price falls, creating a crash and these OTC spikes and tanks that we see so often. Its a vicious cycle, and unfortunately the necessary evil of micro caps like RFMK to have to use dilution to fund progress allows these kinds of scenarios to play out, which leave long term loyal investors in the dumps and the MMs and manipulators flush with cash. Hopefully RFMK management will find themselves in a good enough balance sheet and cash flow position to be able to quit dilution once and for all and rely on good business performance to become profitable soon. That would curb this seemingly never ending downward spiral that is too often the usual outcome for many of the pink sheets micro cap start up companies.
GLTY
$RFMK!