Posted On: 12/06/2016 1:14:31 PM
Post# of 22467
You're logic is slightly flawed. You should look at it from relative multiple.
Assume your 400,000 share are worth $0.15 (x20 = $3), you therefore have $60,000.
They do the split and you have 20,000 shares and they are worth $3. You therefore, still have $60,000.
What you are implying is that they don't R/S and go from $0.15 to $3.00 with organic growth. This is a multiple of 20 times, thus R/S ratio.
Without R/S and with organic growth by 20 times, you have $1.2 million.
If they R/S and we start at $3 and the company grows further after the split by the same 20 multiplier to $60/share, your 20,000 shares are now worth $1.2 million.
There is no difference between what you had before or after the R/S. This assumes the company does a R/S with contracts in hand and revenue grows.
Assume your 400,000 share are worth $0.15 (x20 = $3), you therefore have $60,000.
They do the split and you have 20,000 shares and they are worth $3. You therefore, still have $60,000.
What you are implying is that they don't R/S and go from $0.15 to $3.00 with organic growth. This is a multiple of 20 times, thus R/S ratio.
Without R/S and with organic growth by 20 times, you have $1.2 million.
If they R/S and we start at $3 and the company grows further after the split by the same 20 multiplier to $60/share, your 20,000 shares are now worth $1.2 million.
There is no difference between what you had before or after the R/S. This assumes the company does a R/S with contracts in hand and revenue grows.
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