RE:2:1 share consolidation
yes, that is what happened. I dont honestly think at around 80 million that needed to happen per sa but I fully agree with it. There is no doubt capital raises will be needed so rather diluting at lower levels which will be of more shares...say to raise 5 million at 8 cents that is 90 million plus shares but at 16 that is 45 million which would you rather have? When people see massive amount of shares and little to no revenue the stock will have lots of problems and will either stay low or go lower still. One poster stated he or she will not increase his or her shares until he or she knows the type contracts this company will have which sounds really prudent. I would say the same thing but if the company shows strong contracts you will pay more if not you didnt potentially put your money at a losing position. Bottom line this has now got to prove to get decent contracts ...fewer with large values or more with smaller values typically pennies get contracts in the range of 500k purchase orders to 2.5 to 3 million from what I have seen some may see closer to 4.5 5.0 million and I am talking about in a quarter so 2.5 per quarter would put it 10 million for the year. I am looking to see if this will beat those typical contracts and will not make any guesses and create speculative noise here. They fall into small ones what can you say? They beat them that's when things will get exciting. Many companies that have transitioned into ppe didnt from my recollection properly/fully disclose the worth of their contracts...many said we are going to make x amount of face shields and look to ramp up...well that is fine and dandy you have no idea as to what the contract is worth and are trading blind...not a useful news release at all then you are waiting for a quarter or so where companies by law have to report their revenue if good you are happy if you held if not down goes the share value. The next level is even if you know the contract worth unless you know the profit margin you are still going in blind. Some companies will talk about this but they are the few as many will not like to disclose it because they will say for competitive reasons trade secret but again must all be reported on the quarterly financials. The same goes for monthly burn rate I have found the majority will not disclose this...for all this information it is very important to be strong at reading the financials if not like myself then it is best that when you see profit you take it...regardless of to what extent on how many shares...even if you are really good with funsncisls and companies dont fudge any numbers etc how they will do moving forward is a best guess...maybe their past is a good indicator of future movement maybe not...so with so much uncertainty a bird in hand is worth two behind a bush...you see a good enough rise which may have been incremental and steady or on a run again wise to take some monies...but what anyone does is up to them. From my experience with pennies very few actually live up to their share value on a run, more but nothing to write home about may on an incremental steady growth do, some a very few that are really well manage become EBITDA or net positive...stocks simply put is sheer gambling even for those who know what they are doing because I dont believe anyone can 100 percent of the times project earnings right on and unfortunately people gamble that as the saying goes a stocks share value projects its future potential. I see many pennies trading very high and in time the majority dont live up to those projected future potential and eventually the bottom line catches up and they implode having a real tough time getting back to where they were the majority never do...that's the penny game for you. This company historically hasnt shown much in terms of revenue so that being said it was a smart move to get into ppe...what it shows here remains to be seen. I wish I could say they will show contracts on the higher side like 4 million plus but I think that may be expecting a bit much right now...let's just see the contracts come first and let them keep growing from there and the company doing everything to keep the share structure from blowing up which with pennies is not uncommon and going back to saying cutting the share count by half was the right move. A financing is likely coming the company I suspect would have either already bought the equipment and will say to finance it they are raising capital or will need to to buy it...covid was in the process of securing it and now that the company acquired covid they are responsible for the costs...so I will not be surprised if a financing will come...the equipment is 4.5 million. But no finsncing I will be surprised and impressed...the company prior to the cannabis crash didnt have much in terms of liquid resources historically not well capitalized but was building to it with the cbd digester so I suspect that hasnt changed much. I wouldn't be looking for any miracles with this company just one that has a lot of work to do to grow and become more established...that said lets see how it does do. I said I didnt want to speculate but I kind of did saying what I did and where I see this company at this time but I may well be wrong although not likely this is a typical start up regardless of how long it has been operating that has a ways to go to bump that classification out...let's call it for what it is and I suppose align our expectations accordingly so they are reasonable and to avoid any disappointments. That said I still stand behind the price projections I mentioned earlier but as to whether they are justified well depends small contracts get lots of those frequently or some really large ones less frequently then yes ..relative to also what we see with share management and financials being healthy....if not then of course no...sharp rise best to cash some monies out.pennies are pennies for a reason. Glta