Doubtful ! If the estimates that have been indicated by Mr. Steven Samblis are accurate, the cost to change the symbol is somewhere around the $15,000. mark. Everyone knows, or should know, that Mr. Samblis keeps the company running by selling stock to finance day to day expenses, and also… cheap shot coming… his bar tab. So, it is conceivable that in order to do a symbol change he would need to sell stock to pay for it. Today, the PPS was for the most part of the day sitting at .0001. In order to sell enough stock to pay for a symbol change at that price, Mr. Samblis would need to sell 150-million shares of stock to pay for the change. Doubtful he will do that unless or until the PPS increases….which seems unlikely anytime soon.
Given the PPS lately, Mr. Samblis has likely had to sell more and more of the company’s authorized shares to pay the ongoing expenses of the company, and, his personal compensation as CEO. Mr. Samblis had posted previously that there were some months where he would need anywhere from $15,000. to $40,000. to run the company per month. Now given the recent decline in the company’s activities its unlikely he is needing that much every month now, however its fair to assume he needs some amount of money to operate the business’s day to day operations. Mr. Samblis likely has personal expenses to meet also, and the funds to pay those expenses likely result from selling stock also. Where else could the money be coming from if not selling stock? The company has no revenue (according to the last few filings), so unless he has a part time job somewhere, the funds come from selling stock.
So… at the recent PPS average, it’s conceivable that Mr. Samblis is selling somewhere between 25 and 50 million shares of stock every month (and that’s assuming he only needs $5,000. a month). Of course the quantity sold would be adjusted accordingly based on then current PPS and amount of cash needed. As the PPS declined, Mr. Samblis was forced to sell more and more shares of stock just to meet the same level of monthly expenses. The low PPS is killing shareholder investment twice… once because their investment value is decreasing as the PPS decreases, and again when Mr. Samblis needs to dilute at a greater and greater level to meet the fixed monthly expenses, given that share value is worth less. Shareholders will likely be shocked at the increase in Outstanding Shares when the quarterly report is released in a few days (or maybe longer if an another extension is filed). Remember, as the PPS falls, a larger number of shares needed to be sold to meet the fixed expenses.
Mr. Samblis’s back is likely against the wall. He is caught between keeping the company afloat by selling more and more shares, thereby diluting the company into oblivion, or increasing the Authorized Shares (A/S) in order to be able to hold on a little while longer. However he likely knows that increasing the A/S count at this point will be the death blow to the company. There is always the Reverse Split (R/S) option as a last ditch attempt at attracting new investors that wouldn’t normally touch a stock selling in the tripple-zero’s, however he likely knows that a R/S would also be a death blow to the company.
What is a CEO to do ???
Well, one tried and true option would be to find a tactic to keep shareholders hanging on until he can perhaps make the VU Television Network thing generate some revenue. Enter the pseudo-CEO messenger. If Mr. Samblis can find someone he can convince to promote his business using pseudo-information fed to them on the condition they not release the details, that person will spread the word that something really big is happening, and shareholders should not only hang on, but buy more a these low prices. Hopeful shareholders will likely latch on to anything because they want to have hope that they have not lost everything with their investment. The CEO feeds the ego of the pseudo-CEO messenger by telling them he is confiding in them some secret information that will blow the lid off this stock… BUT… they can not release any details to the public. ONLY the pseudo-CEO knows this information, therefore they feel special, and powerful, knowing they have information that no one else has. The pseudo-CEO will say things like he has inside information that he can not release… but trust them… it’s the truth because they heard it straight from the CEO. This is an extremely useful and effective tactic for CEO’s to use. They plant the rumor, but then have deniability so they can not be held accountable for misleading investors. Think about it… use your common sense… if the information being “secretly” spoon-fed to this person was valid… why would this information not be worthy of a press release.
Remember… Mr. Samblis needs buyers for the shares he needs to sell in order to meet his financial needs. At these low prices, potential buyers need to be incentivized to not only buy more stock… but not sell the shares they hold because those sales would be competing against the company’s for the small pool of buyers.
We will see what the quarterly report holds in a few days. Hopefully it will be less than a disaster ! The good news is… the PPS can’t fall like it has in the past when reports were released ! (not the good news you might have been looking for, right !)