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TOPIC: increase
#2787
Kdub (Visitor)
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increase  
Ok.  I have had a full night to ponder the increase of authorized shares from 2.06 billion to 2.5 billion that took place on the 24th. I'll be honest, the moment I heard about this and confirmed it, my money was out and I am glad I pulled it out.   There is three senarios that I see from this increase.  One is really bad, one is really good and the third is bad and good. 1st scenario:  They are increasing the authorized shares thus diluting the stock.  Not sure why they would do this, but hey, scams happen. With the exposure of this company though I have my doubts of this being the case.  They would be screwed if they were caught scamming because they've put their name all over the place. 2nd Scenario:  They might have increased the amount of authorized shares to accomodate a merger with a company on the nasdaq.  When you merge you have to convert shares of the other company into shares of SPNG.  I have always had the opionion that the company wants to maintain more than half of the authorized shares in the treasury to ward off any hostile takeovers.  Thus they would now need to keep more than 1.25 billion shares under company control.  This scenario by the way makes a lot of sense to me and could be the reason but that is entirly my opinion. 3rd Scenario:  They are raising the authorized shares because they are diluting the stock to raise more money because the didn't recieve there line of credit.   Possible scenario and more likely the reason to dilute instead of an all on scam.  If they did raise the outstanding shares I am hoping they did it for absolute legitimate money raising reasons for the continued promotion of the business. These are entirly my opinions.  You all called me a basher yesterday, but if you read my posts I have clearly supported the stock and love the product.  I just want everyone to have the correct information. With that being said.  They will have to release an 8K by Monday according SEC law stating that the authorized shares have been raised.  Take that for what its worth.  I'm not telling you to buy or sell.  I'm just merely stating facts.  I plan on buying back in once this 8k has been filed.  I'm still long, but a cautious long as were playing for cash and not points here.
 
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