Someone recently posted, in reference to snpw, the statement outlined below. I agree with the statement. Someone clearly has no clue how the share structure can impact the current price. Especially true for a penny stock and yes, undiluted/unallocated shares can factor into the current price.

The explanation is simple. Pre reverse stock split the float represented approx. 95% of the authorized shares. Post reverse split the float represents .00025% of the authorized shares.

While true dilution will not occur until the new shares, roughly 1billion created from the recent reverse, are introduced into the float. However, the mere fact that there is the potential of the new 1 billion shares being introduced to the 250k float pool is a potential deterrent to the stock demand creation. Risk always factors into buying decisions and subsequent pricing of stock.

Those saying the unallocated shares don’t figure into a potential buying decision and the associated risk are immune from price clearly don’t understand how the market works.


Oops....someone has no clue about how a company's SS works and foolishly thinks unsold (undiluted) shares affect the current PPS.

My opinions.