Posted On: 03/14/2016 3:46:58 PM
Post# of 230
In this situation an RS would be bad, because it's the only way an .0001 stock can go down in price.
Right now your 10 million shares are worth 1,000 at .0001 and can't go down. You might not be able to sell them if the stock goes no bid, but that is what they will be worth if there is any liquidity I the stock.
With an RS of 10 to 1 they would become 1 million shares worth .001 at a value of $1,000 but now they could go all the way back down to .0001 and be worth $100.
My personal opinion is that an RS for this stock down the road would not be then end of the world. This company has to get the share structure under control and they can only do it through buyback or reverse split.
But the reverse would have to come after the debt is gone, after the buyback program is complete and after some real demonstrated strength in the marketplace otherwise it would be disaster.
If your are new the other thing to know is that an R/S is never 2 to 1, it's usually 50 to 1 or more. I've seen 10 to 1 and I've seen thousand to one. And because it's usually done to free up space to convert more debt into shares there is a very negative reaction to in in the OTC.
Right now we (shareholders) do not want an R/S. Maybe when the stock gets up to .0025 or more, there is strong liquidity and the company has bought back some shares it would help the stock value.
Right now your 10 million shares are worth 1,000 at .0001 and can't go down. You might not be able to sell them if the stock goes no bid, but that is what they will be worth if there is any liquidity I the stock.
With an RS of 10 to 1 they would become 1 million shares worth .001 at a value of $1,000 but now they could go all the way back down to .0001 and be worth $100.
My personal opinion is that an RS for this stock down the road would not be then end of the world. This company has to get the share structure under control and they can only do it through buyback or reverse split.
But the reverse would have to come after the debt is gone, after the buyback program is complete and after some real demonstrated strength in the marketplace otherwise it would be disaster.
If your are new the other thing to know is that an R/S is never 2 to 1, it's usually 50 to 1 or more. I've seen 10 to 1 and I've seen thousand to one. And because it's usually done to free up space to convert more debt into shares there is a very negative reaction to in in the OTC.
Right now we (shareholders) do not want an R/S. Maybe when the stock gets up to .0025 or more, there is strong liquidity and the company has bought back some shares it would help the stock value.
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