Authorized Shares are the number of shares the com
Post# of 41414
Posted On: 06/19/2014 2:44:43 PM
Authorized Shares are the number of shares the company is legally allowed to issue. It is NOT the number of shares that are available for trading (the float), nor is it necessarily the number of shares that are held by investors (the outstanding shares).
So, knowing Baltia does not sell shares into the open market, but through private placement only, what does the A/S increase mean for us at this time? Not much. Once those shares are sold as private placements, they have 6 months before the owner(s) of the PP can sell them. So we have at least 6 months before the stock can be added to the float, and it is highly unlikely that all 480M added shares will be "dumped"....guys like LT who buy stock in the millions of $ do not look for 200-300% gains, they look for that one investment that takes them from middle/upper to super disgustingly rich upperclass.
So again - the A/S increase means nothing for us at this time. Consider this: the O/S is about 3x larger than the float right now, and for several reasons. Besides management not being able to sell their stock until certified, the rest of the PP is being held by smart investors. Why take 50% when 500% or even 1,000% is possibly just a few weeks away?
So, I repeat myself: focus on the float. When the float begins growing rapidly, it will mean a lot of PP holders are selling their stock or at least converting it to tradable shares. That could be a sign to begin taking some profits off the table. It's true that the O/S determines the market cap, but Goldman isn't exactly going to announce a price target for Baltia Airlines (LOL) so we don't and can't know that the market cap is a pertinent figure for how high the share price can go. For example: anyone with a brain knows that baltia currently isn't worth $4 billion. BUT, the share price has the above-average potential to approach $1 simply as a result of the stock being in the pennies, on the OTC, and fairly volatile with a low float.
So, knowing Baltia does not sell shares into the open market, but through private placement only, what does the A/S increase mean for us at this time? Not much. Once those shares are sold as private placements, they have 6 months before the owner(s) of the PP can sell them. So we have at least 6 months before the stock can be added to the float, and it is highly unlikely that all 480M added shares will be "dumped"....guys like LT who buy stock in the millions of $ do not look for 200-300% gains, they look for that one investment that takes them from middle/upper to super disgustingly rich upperclass.
So again - the A/S increase means nothing for us at this time. Consider this: the O/S is about 3x larger than the float right now, and for several reasons. Besides management not being able to sell their stock until certified, the rest of the PP is being held by smart investors. Why take 50% when 500% or even 1,000% is possibly just a few weeks away?
So, I repeat myself: focus on the float. When the float begins growing rapidly, it will mean a lot of PP holders are selling their stock or at least converting it to tradable shares. That could be a sign to begin taking some profits off the table. It's true that the O/S determines the market cap, but Goldman isn't exactly going to announce a price target for Baltia Airlines (LOL) so we don't and can't know that the market cap is a pertinent figure for how high the share price can go. For example: anyone with a brain knows that baltia currently isn't worth $4 billion. BUT, the share price has the above-average potential to approach $1 simply as a result of the stock being in the pennies, on the OTC, and fairly volatile with a low float.
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