I know it is tempting to buy a 3 c stock after an infinite decline
but the odds are against SAPX if u understand why it dropped. It only dropped because creditors converted their debt into equity and sold it immediately on the free market. there is still about 12 mio to convert!!! Go figure how many more shares this will create at 3 c!!! note: the board just recently approved the higher float. they just want to milk as much out as possible before shutting SAPX down and leave the commons with ZERO¬
Infinite? You are reaching with that overstatement. I would say steep decline, continued decline, but now it's green. Fine someone painted it with 300 shares but let's talk.
"It only dropped because creditors converted their debt into equity and sold it immediately on the free market."
And selling into downside momo is fairly stupid, IMO. And I don't really care how badly the creditors were hurt, considering (as you put it), they sell as quickly as they do. Secondly, debt reduction does favor the company - DUH! - LOWERING THE DEBT ON THE BALANCE SHEET. You claim this goes to zero. Ok, you have your opinion public. Their los angeles isn't far from me. I may go there for a visit. Have you been there?
No I havent been to their office. Why should I? I have all information publicly available and what I see sucks! There is an immediate risk of BK, there is continuous dilution and a CEO earning more than the company's annual revenue (literally). The only thing that would make SAPX change its downtrend would be a new deal wrt to their financing but I guess no one is interested since their operational business isnt really supporting enough the entire cost structure either. they make like 2 ml revenues. what a joke and the CEO makes 500k??!!
LOL - You have NO IDEA of the DEBT implications here. TRUE that a reduction of debt does favor a company - BUT - In the case of SAPX , which is poorly managed and loosing $$$ from operations no matter HOW they paint thier business operations, they will continue to INCREASE the DEBT. The increase to 250M A/S if you do the math is NOT ENOUGH to take out the OLD DEBT. And as you say you don't care if the lenders LOOSE money dumping thier converted shares, Likewise they don't care how much value SHAREHOLDERS LOOSE as they dump MILLIONS of shares YET TO COME. A little, very little math on your part , and you can and will see the PPS going to ZERO and BK for that matter.