Varchild2008 (84.39)

Nighthawk went *POOF* ... ATVI's Wolfenstein releases ...EAG update

August 18, 2009 – Comments (4) | RELATED TICKERS: ATVI

NIHK = POOF!    It's gone....  No more.... POOF!  Just like that....  In my portfolio... then gone...
Alas.. Poor... Nighthawk...  Pretty much a MIRACLE that I managed to grab $273 of my money out before the share price shot to near ZILCH and the stock thrown onto the Pink Sheets today.

*Sigh*  But, if this is any evidence that investing in Penny Stocks doesn't work.... (SWTX) has so far been a huge success. 

Southwall Technologies has more than made up the loss I took in Nighthawk.

So, this does not change my mind any.  I think a grab bag of penny stocks will result in a GAIN overall.   I am only against exclusively investing in Pennies...  But adding some Pennies to overall portfolio is well...perfectly fine.  You may find a winner.  Finding 1 winner out of 3 that you grab is well worth the trouble.

So.. Nighthawk's dead.....  Now I am left with 2 penny stocks... (SWTX) and (EAG),

SWTX is a huge success...  that stock has escaped back above a Buck and continues to hang tough.  I increased my stake a few weeks back during its ultimate rally from 50 cents a share to trade at $1.24 today.

EAG (American Defense Systems)... Well.. I have nothing to add or say... As long as the company continues to have this frightening *SHADOW* hovering over it... it won't matter that the company produced Record Earnings in Q2.   No one will care...  Investors won't care...

I don't care.. I mean... I'll keep buying this at 50 cents a share... Purchased 510 shares today just to sorta give the stock a "love tap" but... Beyond that..

Investors are faced with a company that is perpetually not profitable as long as there is an insurmountable obstacle of EXPENSE to pay West Coast Partners their negotiated payment.
The company is not even confident they can pay 1/2 the amount by the end of this year....
Much less all of it.

But, yet... I find myself INCREASING my share count rather than decreasing it.. All on pure speculation.  EAG is not a bad company.... It's just in a pretty bizzarre financial situation right now.

Of course, the way I see it...  What's so wrong with a little Share Dillution?  Let's cut the share price in 1/2 to 25 cents a share and get the payment paid off.

Investors would feel immediate pain beyond belief in a Secondary Offering at 25 cents a share... But, once the BLEEDING from the share dillution stops.... It will be all worth it over time with the *SHADOW* finally gone.

Ultimately, the company's got to SELL SOMETHING to make the payment.  And I'd rather they did not have to sell off APSG to do it.   (F) FORD  has survived inspite of several share dillutions.

Share Dillution is nothing against the prospect of paying off the DEBT and cleaning up the balance sheet.  So OSHKOSH Contract or no Contract...  Let's get this DEBT put away before the next Earnings Report in October/November. 

Oh and (ATVI) bit of news... Wolfenstein releases today.  So far the Critics are beating it up mostly for its rather incompleteness.  The game is clearly an excellent video game so I am buying it today, but the product does have the apperance of incompleteness....  I own Baldur's Gate Dark Alliance II and that game was tremendously incomplete looking.... But it was extremely fun.

Wolfenstein's negatives do not detract me from plucking down another $60 on another video game.
Raven Software tried to do MORE with this title than the predecessor and simply didn't have as much time as it would have taken to really flesh out the NEW STUFF....  However, they made some spectacular missions... And Wolfenstein used to be nothing but Mission Based.

Now Wolfenstein has RPG elements + Open World aspect + Side Quests.  All new stuff. 
Knock a game for adding new stuff?  Because the new stuff isn't complete enough?  Nah... I ain't worried.