Post by
House7575 on Sep 08, 2011 1:48pm
Re: Prediction
Food for thought. If you look at the Co's liquidity and cash burn rate they could be out of cash by the endof the year. I personally suspect insiders and those that got into the $.50 financing arent buying because they Co is going to raise more cash at these depressed levels and they will sweeten the deal with warrants. The end result is there is going to be some major dilution to current shareholders if they dont particpate in the next round. The alternative is getting a term loan which will also result in dropping the shareprice as Enterprise Value is a function of Equity and Debt. As for value... sure its worth 40% of what they paid for them but it still isnt a deal until their liquidity issue is behinde them. In the end, I hope I am wrong.
Comment by
BillyBatts75 on Sep 09, 2011 11:36am
Yeah it sure looks like were headed for a 2-4:1 reverse split.... the bleeding is not stopping ....