Re: \"Monster Diesel\" product by Alkane Inc.
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what does this mean, market cap of 200 million? does it mean that many shares can be sold? or was sold.
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http://www.pinksheets.com/pink/quote/quote.jsp?symbol=alkn
Mkt cap is the outstanding shares x the current price, which means $78 million, as of today. That's way too much given what is known, and where they're at today. (However, the only way to know for sure the outstanding share count is to call the stock transfer agent.....mind you, judging by the way it's trading, I don't think they are selling into the run.)
Of those 130 mm shares, Zuckerman and other insiders own 90 million.
They have some debt, not a huge amount, but, if they land some substantial contracts, how will they increase production without selling shares to raise funds? They will have to dilute the stock, as small companies usually have trouble raising capital through other means.
That said, if they do land some contracts, or release proof of growing sales numbers, the stock price will reciprocate.
My guess is, when the excitement wears off, this will pull back. I said there's no hype, true, but the volume has been large these last four days, with many small trades. Day traders joined the fun, as they always do with big movers. They'll lose interest, and the little guys who bought for themselves will be tapped out. When volume drops, the price will follow....down. But, as the supply seems small, and many won't want to sell, there may not be much selling.
After all that rambling, what I really mean is, I'll not be surprised if it trades higher, or lower.....
I think I'll call the company....to talk to Mat or an exec, not an IR person......I want to know about: funding, growth and how they could handle it, and product testing verification...as well as when they will apply to the OTCBB for listing.