I'm prepared to loose my shirt, teeth, pants, and shoes over this Stock
What's wrong with investing in PENNY Stock (EAG)?
A) West Coast Partners dumping their shares is continuing again.. Due to a negotiate deal on Warrants their common share stake, however, has increased from 9 to 20 some million.
Nonethless, when the biggest share holder is dumping stock, regardless if for reasons that may/may not have SOMETHING to do with the future prospects of the company or the future prospects of the share price
B) Despite landing massive contracts from the Marines, the company's financials are still deeply in the RED.
C) No end in sight over the West Coast Partners negotiated deal in which includes EAG paying them a hefty sum, 1/2 of which is due by end of this year.
So.......I guess I am either the DUMBEST investor of all time to not only carry tons of shares of EAG but also to have increased my stake mightily.... Another 500 bought... yes...That's why it's at 48 cents today. Cause Varchild is Crazy right?
Perhaps....Perhaps not..... I did lose out on NIGHTHAWK.. Believing in the company's product but not the Company is a poor strategy.
I may be doing the same with American Defense Systems....Believing in their products/services and not in how the business was managed.
Cause... I ain't afraid to say that EAG used West Coast Partners like a LOAN SHARK to buy APSG..... And in doing so owed in Dividends (which are kinda like Interest payments on Loan Shark Loan) more $$$ than it could possibly earn in a year's time.
These unpaid dividends just mount up quarter after quarter bleeding and sapping the company dry.
There is absolutely no anxst from me regarding West Coast Partners... The Role they played was the role of an investor community helping out American Defense Systems (EAG) to buy APSG and create a much bigger, healthier company..... But they want and deserve a RETURN on their investments.
So I don't place any fault or blame or anything on West Coast.. My concern is that EAG definitely dug their Shareholders into a really, really, steep debt to climb out of....
As shareholders we have to place our confidence in West Coast Partners that they will work with American Defense Systems not like a Loan Shark out to get them but like a co-operative community willing to be a bit more patient...
Of course the law is the law and extending patience out to (EAG) may not be as easy as it seems to me.
But, I strongly believe that if (EAG) is given to 2012....... Not only will the West Coast issue go away with both partners happy..... But, EAG will have created strong earnings growth by then that is going to pay HUGE dividends for shareholders.
The problem though is whether (EAG) is healthy enough TODAY to actually make it to 2012?