Wednesday, December 30, 2009

CBAI - Sell, Sell, Sell

CBAI may look like an attractive buy to some investors.  The company does operate in the controversial stem cell field, which could prove lucrative down the road.

But one thing that isn't lucrative, as far as shareholder are concerned, are S-8 filings.  I find it odd that this stock ran up today and the last few days just prior to today's S-8 filing.  For those of you who don't know what an S-8 filing is I will simplify it for you.  An S-8 filing in one word = DILUTION.

While the kool-aid drinkers were enjoying another green day for CBAI, the company itself was readying itself for another 80 million shares to be dropped into the marketplace. 

The bottom line is investors are buying stock in a company that continues to dilute its shareholders.  This sinking boat just keeps popping more holes, and eventually investors will abandon ship.

The S-8 Filing




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