A Christian video game producer sparkling unrest and fury – this is what has been going on with Left Behind Games (PINK:LFBG) recently. Even the announced record revenues and profits did not manage to calm down shareholders. Forums and blogs exploded yesterday, as main theme of all discussions included the words dilution and Troy.
Now, the reason for that is simple – because Troy Lyndon is the CEO of the company, and because Left Behind has managed to secure $10 millions for its operations. This means one thing – the number of shares would double, their price would go down in a rapid manner. Basically, a pretty bad deal for current shareholders, but not a new scenario for this company. Just two years ago, the number of outstanding shares was around 200 million, so imagine the loss of value over time.
I can help you with this – the shares used to trade at $4, the last session revolved around $0.003 and it would be no surprise if the downtrend remains. The fact of the matter is, it has been a long time since this stock has been flowing in the sub-penny area, and this has been justified by the numerous splits, discouraging balance sheets and the overall controversy that surrounds it. Let alone, while some people like the products of Left Behind, others see it as far distant from the standard Christian beliefs and traditions. [BANNER]
It is also a fact though, that the balance sheet is improving, at least, compared to the figures of 2009. This is encouraging and there might be a moment in the future when shareholders would see their stock going above the 0.01 level. There is also little doubt that Left Behind has found a niche opportunity – Christian games are not really overflowing from stores. The online christian network that the company acquired recently is also one reason for hope that additional marketing channels would mean additional profits, thus additional value for the stock.
Until this happens, however, there would be mostly controversy and uncertainty that would go together with this company. One thing is sure – speculative days on the market are to follow, given the latest announcements.
