ATSI COMMUNICATIONS INC (ATSX)



The company deals with VOIP and their sales have been exploding upwards the last year +. Their revenues continued to grow but the growth has slowed some. I felt the company had great potential for a nice run. And as you can see by the chart moved up nicely after I bought the stock. (At one point I was up 50%+)

However the company came out with a 10Q report that I wasn't impressed with at all. And my big issue with this stock was could they stop themselves from printing stock? And based on the 10Q they released the answer was a BIG NO!! They went from 19 million shares to 32 millions shares. Or a 68% increase in one report. Their marketcap went from $6 million to over $10 million OVERNIGHT. And none of the shareholders got any part of that.

I felt mislead by the Investor Relations that ATSX uses as well. They kept telling me the company is only looking to have 22-24 million shares outstanding. Well that was WAY off. And looking further in their 10Q I could forsee close to 40 million shares outstanding within 6 months.

That all being said I needed a .46 share price in order to get my double. And even with 30 million shares outstanding I didn't know if that would be doable with the kind of net earnings ATSX will be doing. So instead of being stuck with the stock for possible years I decided to exit the stock at basically breakeven. (I made 1/2 cent per share.)

So after my ATSX exit 17,500 shares at .235 that is roughly $4100.


ATSX


ATSX
ATSX