At the next shareholder meeting, their will be a vote on adding
and additional 100,000,000,000 (as in one hundred billion with a "B")
authorized shares. It doesn't take rocket science to see how this could
dillute the value of our investments. If the company needs to raise money,
here's an idea, like the rest of us, be productive and earn it. Whether any
of you have a large investment (champagne) or a small stake (Kool-Aid), nobody
wants to see it get needlessly watered down. We have endured bashers trying to
get us to second guess the value of the company without facts and references to
back their scare tactic claims and pumpers trying to increase their bottom line by
masking the fact that even when oil was up, this company was still struggling.
Whatever the truth is, I had no say in irresponsible WallStreet companies being
bailed out by both political administrations or companies using taxpayer money
to throw lavish parties (I mean "training conventions" wink wink). But I resfuse
to be slapped in the face, especially in this economy, by someone trying to water down
I have read many "implied" truths of bashers (including their pathetic, non-factual name calling campaigns to distract from their non factual implications) as well as the equally tacky, exaggerated claims of pumpers.
I hope that I come across as neither. The above is my opinion as is my right in a free, democratic society. However, I sincerely hope others will consider voting down these billions of shares as well.
The few shares I have are on the block for 0.0003. I hope to get them sold before the stockholder meeting. Once the number of authorized shares are increased no doubt the company will start selling shares immediately. Having an outrageous number of shares authorized is a sick new phenomana that is spreading like wildfire among these OTC stocks.
The company isn't going to sell the shares to raise money, they company already owes the money to its CD (convertible debt) lenders. They need to increase the share count to pay off their debt. They've already spent the money years ago. The company could have raised more funds with equity financing without diluting the hell out of the stock instead of CD financing which made the stock and company worthless. The assets are now tied to that debt. They have absolutely zero power to negotiate for any financing because until their debt is paid off, they own no assets that could be used as collateral. The CD holders own the stock and the company assets at this point, and there's no easy way out of this.
Your math is wrong, they are not adding 100 billion to their exist 6.5 billion shares, they are increasing their 6.5 billion share to 100 billion, thats another 93.5 billion shares, not that it makes much of a difference. That being said, you no vote will mean nothing. When I was tracking the buys and sells from the beginning of the year up until the end of March, there were over 3.5 billion shares being held by the MM's, just enough to approve a yes vote. I bailed when the announcement was made to increase the A/S again knowing full well that the results were already in the bag.
This is a piss poor investment. The company has not done anything in over 1 year. They receive revenue from 4 wells they assisted drilling, and NG prices have dropped 70% from last year, that means their revenue has dropped 70%. Their monthly debt load is around $600K a month, and their revenue is under $100K a month. They have no choice but further diluting the stock to make their debt payments at the rate of around 6 billion shares a month if the stock continues bouncing in the .0001/.0002 range. Right now it's up in the .0002/.0003 range, so thats still 3 billion shares per month, but it will only take 1 debt conversion to bottom this stock and most likely take this NO BID. This will force a R/S to get the stock trading again, which will just be followed by more dilution driving it right back down.
So if you think .0001 is the lowest this can go, that is false. Once a R/S happens, and this is diluted again, the .0001 could turn into .00001 with a 10 to 1 R/S, .000001 with a 100 to 1 R/S, and .0000001 with a 1000 to 1 R/S. If you hold 1 million shares, after the split you'll hold 100 shares on a 1000 to 1 R/S, your $100 investment will be worth $0.10.
Do yourself a favor, get out of this before a R/S happens and what little you have left shrinks even more. I took over a 90% bath on this investment over 9 months, I wasn't going to wait for it to hit 99.9%.
I vote no as well. If you guys want to put money into a real company with real profits then check out Workstream Inc. (WSTM) Their turn around in the last year was amazing and continues to improve. FY2008 loss of 40.8 million to FY 2009 loss of only 1.2 million and that was in the first half of the year. The second half was profitable and the 1st quarter of 2010 is even better. The pps is at a great entry point. Nothing but good coming down the line. Just so you know, I hold bout 1% of the company or bout 575k shares. Check it out, you won't be sorry.
Your vote will just be a formality, management has the majority of the stock and therefore can do as they please.
All public companies generate funds by selling stock.
This is a gamble, I treat it that way, I still have a few shares, but already made mine on this one. JMNSHO.