Stock dilution is the only problem with PLNI right now. I don't think anyone, including LONGS, should try and argue the point that dilution has hurt this stock. Each time the outstanding shares were doubled, the stock fell my half. A relationship that has held over and over again.
When we had 3 billion outstanding shares, the stock traded for $0.015, when we had 6 billion outstanding shares, the stock traded for $0.0065, and now that we have 13.5 billion, the stock trades for about $0.003.
In otherwords, the share dilution is already priced in to the current value of the stock. This is great news for new investors, but not so good for those of us who have held long term.
Bad? Sure. But it's the ONLY drag on this company right now. It's the one negative situation we have. Historically we've had many negatives to contend with at the same time: no financial numbers to work with, pinksheets.com removing the quotes from the web, BlueLinx contract in jeopardy, Semco deal very looking like it's not going to happen, contract manufacturing business model (they didn't actually produce the product themselves and bashers use to have a field day with that one)....
Today, we have a situation where all these, at one time negatives, have been literally transformed to positives. As a result of the 'no financial numbers', we now have them. That's not a requirement by the SEC for a company listed on the pink sheets. As a result of the 'BlueLinx contract in jeopardy', we now have the contract saved with a stronger PLNI because they purchased their own manufacturing facility to save the contract. As a result of 'pinksheets.com removing their quotes from the web', we now have an SEC approved lawyer certifying the tradeability of PLNI posted on the pinksheets.com website. Management has consistently taken negatives and turned them into positives.
The only negative thing that remains is the share dilution caused by increasing the number of outstanding shares. At one point in time a 6 months ago, we had as many as 4 or 5 negative situations occurring at the same time. Today we have only one! Share dilution.
Will it be taken care of? Sure. Money solves all problems and with the sort of revenue growth we had Q1 2006, I have no doubt that a share buyback program will start in the coming months.
Keep in mind that PLNI has already commissioned a leading Market Maker to submit the necessary filings with the SEC and NASD to move the company to the OTCBB.
Mr. Turek also noted, "There are many significant developments regarding sales that the Company will be discussing with its shareholders and the public in the coming days and weeks. Additionally, we will be implementing the buy back program and addressing the share structure of Plasticon International, Inc. Once again, the Company wishes to be clear that there are no plans for a reverse split now or in the future. The Company fully intends to address the restructuring of Plasticon's issued and outstanding shares through the buy back program, and we fully intend to commence the buyback in the very near term."
Things are moving along very well, and the only negative issue that remains is the share dilution, and perhaps to some minor extent, to have the 2005 and Q1 2006 numbers officially audited as opposed to just have those numbers to look at unaudited right now.
I embrace the share dilution problem. It's not a problem for newbies as the dilution is already priced in to the current value of the shares. For us long term investors, sure we don't like it. But we also know that you must have patience, and that those who got burned like you in PLNI are the impatient rookies who try and do stupid things like day trade this penny stock. I've said it for years now, and I'll say it again, this is a long term, set it and forget it hold with a time horizon of perhaps as long as 5 years. You newbies who only know how to speculate (short term) in penny stocks need to sit down and really cry it all out, then stand back up like a man and take responsibility for your own actions of trying to day trade this stock and loosing money. Is no one elses fault but your own for buying high and selling low. And no matter how much you whine and complain about PLNI and this and that, at the end of the day, it was still your stupid action of buying high and selling low that causes you to realize losses.
Anyone taking a loss in PLNI at this early stage in the companies growth cycle needs to get a clue. No one should be taking a loss on a company that is just entering into its growth phase. If you took a loss, you blew it dummy. Quit complaining and trying to blame everyone else for your loss. Accept the fact that you screwed up for buying high and selling low, and re-think your lame strategy of day trading penny stocks. You've been listening to too many amateurs over at allstocks.com who say 6 months is too long to hold any penny stock. But then again, it's not their fault you listened to them. It's yours. Penny stocks make excellent long term investments. Get that through your head and stop choosing to listen to penny stock amateurs over boards like allstocks.com.
