Dilutive Trends Bring Down The Stock Of Ascent Solar Technologies, Inc. (OTCMKTS:ASTI)

[[tagnumber 0]][[tagnumber 1]]Ascent Solar Technologies, Inc. (OTCMKTS:ASTI) hit a new 52–week low last Friday after the developer of thin–film photovoltaic modules announced first quarter 2016 earnings. Today, the trend continues as ASTI shares are down 19% less than an hour into the new session. Why do investors seems to be avoiding ASTI like the plague?[[tagnumber 2]] [[tagnumber 0]]It is hardly due to the company‘s Q1 2016 numbers – ASTI raked in more revenue on a YoY basis, increased its product sales by 30% thanks to its expansive distribution policy under the EnerPlex brand, and even narrowed its net quarterly loss by 40% as opposed to Q1 2015.[[tagnumber 2]] [[tagnumber 0]]As a result thereof, however, ASTI shares lost 30% last Friday after closing trade at $0.031 per share with almost 30 million shares changing hands. Today, it is already down 27% with a volume of 7 million and there are still quite a few hours to go.[[tagnumber 2]] [[tagnumber 0]][[tagnumber 8]]Even though ASTI substantially improved its bottom line, it still closed Q1 with a net loss of $10.5 million. This means that even though the company‘s EnerPlex products are increasingly gaining new ground in American retail stores and paving the way for its growth plans in 2016, breaking even is still far from becoming a reality. Which is why management does not have many options left apart from keeping an optimist‘s perspective for potential growth opportunities.[[tagnumber 2]] [[tagnumber 0]]A closer look into the 10–Q 2016 figures revealed a disturbing 50% increase in ASTI‘s short–term liabilities, which has in turn had an adverse impact on the company‘s working capital deficit with the latter spiking from $2 million to $5.4 million. Clearly, Ascent will have trouble servicing its short–term debt without resorting to dilutive measures. Speaking of dilution, it is something ASTI‘s managers have been dangerously acquainted with. When we say “dangerously“, we mean it, because the numbers speak for themselves – the company had 18 million outstanding shares as of Dec. 31, 2014. By Dec. 31, 2015, this number had already skyrocketed to 155 million. During the first three months of 2016, an additional 40 million shares rolled out of the vault for a total of 235 million O/S as of March 31, 2016.[[tagnumber 2]] [[tagnumber 0]]As far as the total A/S is concerned, it has so far remained unchanged at 450 million. Considering the rate at which ASTI‘s managers have been pumping out shares, the A/S well will run dry in two or three years at the most. And this is what might look troublesome to investors willing to take or not to take a stake in Ascent Solar Technologies after all.[[tagnumber 2]]