Posted On: 04/14/2016 7:57:35 AM
Post# of 75076
Re: Thczinvestor18 #19889
Calm down folks. Realize this: a rs only hurts investors when a company is doing it in desperation to stay out of sub penny land and to dilute immediately following the split with more shares so they can pay the bills. If sales are smoking hot and the future is looking awesome, a split to uplist won't hurt you. It'll most likely help you cause the uplist will bring in even more investment capital, and the pps will continue to trend upward.
The rs with a desperate company that's failing to generate substantial revenues is completely different. The adjustment props up the pps, but it will usually get hammered by shorters and continue it's downward spiral. A successful company, on the other hand, will see the pps continue to trend up, the earnings per share continue to climb, and a couple of years of that and you can expect to see forward splits to bring the price back down where the average investor sees it as "affordable" and they can actually buy more than 5 shares at a time. Share structure can also easily be adjusted by a successful company with buy backs.
I think what Dadon said would be the most likely scenario. NOT a 1 for 1000, but more like a 1 for 2. Then again, if performance and investor sentiment surprises them, it may not even be required. If you could compare a wait and uplist later strategy to a low ratio rs uplist sooner strategy side by side, you would probably see that the net worth of your portfolio full of stock that uplisted to AMEX sooner would leave the other in the dust. Which would you rather have, more shares or more money? Might as well relax, and if you don't like the investment you can get out really soon when your shares put you in the green. I have a feeling the news that puts you in the green will have you rethinking your strategy.
The rs with a desperate company that's failing to generate substantial revenues is completely different. The adjustment props up the pps, but it will usually get hammered by shorters and continue it's downward spiral. A successful company, on the other hand, will see the pps continue to trend up, the earnings per share continue to climb, and a couple of years of that and you can expect to see forward splits to bring the price back down where the average investor sees it as "affordable" and they can actually buy more than 5 shares at a time. Share structure can also easily be adjusted by a successful company with buy backs.
I think what Dadon said would be the most likely scenario. NOT a 1 for 1000, but more like a 1 for 2. Then again, if performance and investor sentiment surprises them, it may not even be required. If you could compare a wait and uplist later strategy to a low ratio rs uplist sooner strategy side by side, you would probably see that the net worth of your portfolio full of stock that uplisted to AMEX sooner would leave the other in the dust. Which would you rather have, more shares or more money? Might as well relax, and if you don't like the investment you can get out really soon when your shares put you in the green. I have a feeling the news that puts you in the green will have you rethinking your strategy.
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