I don’t have a heavy position on GBSN, so I welcome all rational thoughts. It is OK if you are shorts, as long as you provide meaningful arguments.
I think at $0.17 GBSN is a buy.
1. 200 million extra shares? I don’t see it, not on the prints, otherwise daily volume should be a lot higher.
2. They are authorized for 200 million shares? Maybe, but that does not mean they will issue 200 millions shares. You and I are just small investors, and we are not happy if GBSN goes down from here. What about major holders and insiders? I am willing to bet my money that the management team got lot of angry calls already. $0.17 is not good for anybody. Management misjudged, but they can not be that stupid to see GBSN goes to zero. Looks like GBSN has enough cash now, they don’t need to issue all 200 millions shares.
3. At $0.17, who wants to sell? Maybe some day traders. The price action in last two days showed $0.17 is the floor. I serious doubt any one wants to short at $0.17, there is just not much money you can make to short $0.17.
4. Yes, GBSN may go down another few cents, but upside is 30 cents at least. I am willing to take this risk. The reward is just much higher than the risk.
5. GBSN has products, and revenue is growing 31% YOY. It has cash, it will not go away. Even bankrupt companies can trade at $0.50 for years, what makes you believe GBSN will stay at $0.17 forever?
For $0.17, what if GBSN does not issue 200 millions shares? Think about it? What is GBSN goes to over $2.00 someday? You can not deny there is a possibility there.
27 millions of shares as listed on Yahoo finance. The price was $2.70 before the dilution panic started to hit. The market cap was $2.7 x 27 M= 72.9 million
200 m shares are not converted yet. Let's price that 200 m shares in, the stock price should be $72.9 million / 200 million shares= $0.365 .share.
So, if there was indeed 200 millions of shares, the price should be $0.365, not $0.16 as we see today.
You should write to GBSN management, seriously. They have to hold their horse to issue new shares. Yes, they are authorized to issue some shares, but they don't have to issue them all.
My crystal ball does not see that far, but I am pretty certain this stock is volatile. It won't go straight up to $2.00. It probably won't go straight up to $0.50. I am pretty certain it will test $0.50 first.
No worry, our day will come. It looks a lot like bottom to me now. May take off this afternoon, or stay at this level fro few more days. What really matters is it is bottom now.
First wave will test $0.50
Then it is not a news at all. The price held well untill early August. Why GBSN lost 95% of its value in 2 weeks?You got ask yourself.
10Q on August 12 didn't say anything about 200 millions of shares:
Lot of guesswork here, plus there are shorties intentionally to mislead on this board.
I only trust what I see. The prints tell me there are not many shares outstanding.
8-K didn't say 200 millions of shares, only 37 millions of shares total.
Give me a link that says 200 millions of shares. 200 millions of shares was made up by someone who does not know how to do the math.
Total shares issued outstanding is 37 millions as of today, clearly stated in today’s 8-K. Just a little dilution.
If you are a swing trader, you know the daily volume is tied to the outstanding shares. For a penny stock like $0.17, if there was 200 millions, the daily volume should be greater than 500 millions.
The highest daily volume was yesterday, only about 18 millions at $1.7
The second highest daily volume was on April 22, 2017, about 17 millions at $3.00.
Just checking the daily volume, you know there is not much share dilution since April. If you are a swing trader, you know this. Forget about all the noise on this board. The prints tell you everything.
After all the conversion, the total outstanding shares issued as of today is 37 million. The issues was 27 million. GBSN was about $3.00. That's why C is defined as cashable at $2.55. That's the fair price for GBSN.
Share dilution, yes, some, but as as some shorts made up as 200 million shares. It is only extra 10 million shares(37 million-27 million). GBSN got go back to $2.00 range. The revenue growth is 38%, has products to sell, has a lot of cash....
It clearly stated in today's 8-K
The reason why C shares can be cashed at $2.55 is because GBSN was $2.55 when these shares were issued,. GBSN will be back to $2.55
GBSN is down from roughly $2.70 10 days ago to $0.17 now because of fear of share dilution.
Let’s do the math. Today’s 8-K:
“As of the date of this report, there are 37,600,618 shares of Common Stock issued and outstanding.”
I think the E and C shares make thing a lot confusing for many people, including me. This is how C is defined:
“The Series C Warrants may be exercised for cash at an exercise price of $2.55 or on a cashless basis pursuant to a formula disclosed in the Prospectus”
I am not worried about C shares at all until GBSN is back to $2.55 range.
So GBSN had 27 million shares, and now it is 37 millions of share. The price was $2.7, with dilution, it should be $2.7*27/37=$1.97
Yes, with share dilution, $1.97 is the fair price for GBSN. Plus, do not forget, GBSN raised a lot of money by selling those share.
GBSN has products to sell, the revenue growth is 38% YOY. It will stay in business for a long time.
I bought some at $0.16x, plan to hold it for at least a year. I expect the price will at least test $0.50 for the first wave, then eventually go back to $2.00 range.