RE: Something to considerx
Out of all due respect, your scenario is silly. If the company needs money and has to do financing through shares, they will probably give a 25% premium to the new investors. Thus, using your scenario, if the stock is trading at 0.30, the PP will be probably at 0.22. What that means is that the PP holders will flood the market with their cheap stock ( capitalizing on the price difference). The stock will definitely tumble down to the 0.22 level. If not, the PP will keep pumping the stock, ensuring that they are getting a quick dollar.
Further on the price being driven down, the shares will be dilute, meaning that more stock is available, and our ownership in the company is lessen (for no fault of our own).Some can argue that if the company has a larger float, the loss per share is less ( figure that out...) and that the psychological impact of loss per shares is not so bad..and also argue that a share consolidation is good if the company will be expecting a profit, thus having a larger EPS. That argument is simply a number game, a slight of hand to fool investors.
In reality, some of the earlier posters are making solid sense, if there is a need for additional financing ( and I am weary of that notion but trust the company), why not debitures, loans, or other short term solutions?
For me, I have been holding this baby for a long time, and still plan to hold alot longer. Fundamentaly, this company is good, with a product that seems to be wanted in the community. The VARs is an interesting strategy ( I was not aware that there is now 30..)and it probably (better) work for us.
cheers
Honest Guy