Ooouch! Another day, Another mistakeDidn't think mgmt was able to stoop lower than they've already have, but they've done it here with another useless acquisition. Why in god's mighty name did they unecessarily dilute shareholders again with this misguided acquisition? A charity NFT? Good God lol wTf are they thinking here? What's the angle here? As i don't personally see any that would improve the company from profitability or operational standpoint? Damn, if you really wanted to grow the company through dumb acquisitions, they should have gone with a company that focused on gaming & gamers not charities? What a total blunder.
The real sad & horrible part here, is that this would further dilute shareholders by another 10% without actually bringing anything immediately to the bottom line. By my count, with this purchase the company now has over 600M shares fully diluted. Such a gargantuan number for such a small outfit that really has no revenue stream nor has built anything of significance just yet. And they done this transaction at the absolutely worst time for anything associated with Bitcoin, crypto or NFT's. It's one thing if you're a company like Facebook, Google or Microsoft where you have the resources & stock leverage to do cheap buyouts to grow the company but it's totally another if you have neither and are in deep financial problems yourself that could get worse.
Such a lack of foresight & astuteness being demonstrated here by mgmt that's its mindboggling. Makes one wonder if this was actually done as a genuine action to build out the company or just a simple underhanded manouver to prop up a faltering share price. I guess we will never know the ture motives behind this because mgmt has never shown to be either transparent or communicative with their shareholders. Even if mgmt here was being sincere with this transaction, what a god awful environment to actually do it. What's the excuse for the horrible timing on this? I understand the company's mgmt want to go full in NFT asap, but at what cost to current shareholders? This is my beef with this action, even though i'm not a holder anymore. If i was a s/h now, i would be super pis.......
As the upcoming share divvy approaches, if they actually do it, this only solidifies what i've been saying since my 180 on this company. Thier reckless & greedy motives with their total disregard for s/h value. Imo, this recent action only serves to further diliute current s/h which may reduce their level of participation in the company's purposed spinoffs coming in the next few months. With this said, i stand by what i've been preaching since the 180, GTFO before your total investment in this company disappears into thin air.
As for when to sell, lets just say that when the split is initiated it will be too late. Whatever little investment you get in Babbage or Optimizer after the share divvy is handed out, will be meaningless. Both these companies will have absolutely no cash or resouces to grow and will immediately do an equity raise to remain a going concern or be viable in the weeks after. In other words, you won't be diluted by one company anymore, but three all at once at the same time. I expect both Optimzer & Babbage to fall by the wayside and most likely slowly fade away in the background in the coming years after every drop of blood has been drained from them.
Therefore..... your only salvation left, is what you will receive in terms of investment that's leftover in the main company for NFT's. For your expecations on this front, they better not be too high or optimistic, as you will be sorely disappointed. I FULLY expect mgmt here to implement a major share consolidation accompaning the spinoffs. either by the normal route or by the ratios you get in all three spinoffs. So be fully prepared to take the hit on this if you decide to remain a shareholder to the end.
So this is my rant, commentary & view on this latest move by the GBLC folks. Take this for what it is, agree or disagree with me, your choice. But just so you guys are aware my views or opinions here are based on & come with a multitude of knowledge and many years of investing in the markets. Like i keep harping on here, my goals aside from exchanging investment ideas with other like minded investors is also to use my vast experience to help others less knowledgeable navigate these dangerous waters that have claimed so many victims over the ages. Take this warning or advice for what you will.
GLTA