January Clearance Sale

Since we just covered what happened in December - lets cover January up to today - while some of the numbers are still fresh in our minds. But first of all lets go over some basic points the SkunK has made before:


1. Raising Capital is the reason stocks exist. It is the major way that companies raise capital.
2. After the IPO, dilution in some form is the way that this access to capital happens.
3. Dilution is not inherently evil - it is a part of doing business (especially in OTC world) although like everything else in life - it CAN be overdone.


Of course, we as "current" shareholders want to see minimal dilution since it reduces the percentage of the company we own. Now with the basics behind us lets look at GERS trading in 2009.

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Everyone wants to know when the selling will be over with. The SkunK thinks NOW. Or at the most another day.

SkunK, there you go letting what you want to see cloud your vision!

Well, Mr. Voice in my Head, let me tell you why I think we are about done selling. All of the times we have seen dilution at multi-million/share days it has lasted from 2-3 days and has been on average 3.4M shares. We just hit both marks.

See it real size here: http://docs.google.com/Doc?id=dgzzx2hv_34gghkhzdk

Could the SkunK be wrong? Absolutely! (If you even asked you must be a new reader - "Welcome") But the chance of being wrong has never stopped the SkunK from taking what information he has, try to make some sense of it, and project trends into the future. But like they say - "That's why we play the game!"

Specific reasons why the SkunK could be wrong:

1. We are guessing that this stock sale will be like the priors.

2. We are factoring in only the #shares not the price of shares.

Why we have seen the selling now?

All may be wanting to clear the deck before they inK the deal:

The SkunK does not believe GE and YAGI are going to insist that Mr. Kreisler and Mr. Carroll lock up half their shares for two years so they can dilute. I see those 17M warrants as proof the interests of the deep pockets here will insist on a rising share price. When you hold CD's, dilution is someone else's problem. When you hold a set number of shares - a rising stock price is in your interest. This recent selling may be part of a plan to clear the decks as much as possible before the deal is inked and the serious shareholder wooing (PR/Shareholder Letter?) takes place.

As always, the future will tell for sure,

Good Hunting,

SkunK