Investors Hangout Stock Message Boards Logo
  • Mailbox
  • Favorites
  • Boards
    • The Hangout
    • NASDAQ
    • NYSE
    • OTC Markets
    • All Boards
  • Whats Hot!
    • Recent Activity
    • Most Viewed Boards
    • Most Viewed Posts
    • Most Posted
    • Most Followed
    • Top Boards
    • Newest Boards
    • Newest Members
  • Blog
    • Recent Blog Posts
    • Recently Updated
    • News
    • Stocks
    • Crypto
    • Investing
    • Business
    • Markets
    • Economy
    • Real Estate
    • Personal Finance
  • Market Movers
  • Interactive Charts
  • Login - Join Now FREE!
  1. Home ›
  2. Stock Message Boards ›
  3. Stock Boards ›
  4. POET Technologies Inc. (POET) Message Board

I was away for the weekend so I'll throw in my 2c.

Message Board Public Reply | Private Reply | Keep | Replies (0)                   Post New Msg
Edit Msg () | Previous | Next


Post# of 1145
Posted On: 07/14/2014 11:00:18 AM
Avatar
Posted By: sevenOdouble
I was away for the weekend so I'll throw in my 2c... Reverse Splits are 'usually' frowned upon, and rightfully so, 'IF' this is done by a company in distress. Luckily this isn't the case with PTK, quite to the contrary, so I really have to laugh at the ones saying (on other fora) that we'll fall back quickly to pre-split levels. That only happens with junk stocks! So comparing PTK with such companies is really ludicrous and uncalled for!

Actually, there are only four instances I can think of where a RS is favorable; to uplist, to allow institutional players in, to get access to better funding conditions, and to facilitate a merger or other related corporate action. I'll be voting YES, for the following reasons:

- Uplisting to a higher exchange.
- To get the SP above $5 so certain Institutional Investors can buy PTK.
(I think ATIC) They own GlobalFoundries & now their ex CEO joined PTK... hmmm
- The RS could also be done to facilitate a merger. Say company X wants to merge PTK in their business and does that for a 1 for 1 share exchange, then having a reduced Share Structure (SS) is favorable for their shareholders, and ultimately also for us.
- Once revenue flows in a reduced SS will offer higher EPS & be beneficial to calculate other market metrics.
- Think about what will happen when stellar news is released, with the pool of shares decreased after a RS?
The influx of more buyers will cause higher % increases, especially when more deep pocketed investors are allowed to play PTK on the NASDAQ, or whatever exchange.
- I also think that a year or so after the RS we'll see a FS, as the reduced post split float will be gobbled up rather quickly by the same deep pocketed investors.
- Once we trade on a higher exchange there will be more demand and a higher daily average trading volume which will be easier for Warrant holders to sell, with a less detrimental effect on the share price.

As you can see there are plenty advantages to a RS scenario.
I can understand the first panic emotions by those who had bad experiences in the past with shady companies, but given more thought there's not much reason to be concerned when its done to uplist by decent businesses.

Keep in mind tho that it might not be necessary at all to do a RS.
The company only asks for an amendment to its Articles of Incorporation just in case the situation at the time of uplisting calls for a RS, say in a bearish market where the SP has dropped under the minimum Listing threshold. With all the upcoming news over the next 12 months I somehow doubt a RS will be necessary. When it does happen for whatever reason I expect a 2:1 or tops 3:1. A 5:1 split is the absolute maximum, in a worst case scenario and I think that management is fully aware that their own holdings are not excluded from a RS, so they'll do whatever they can to grow to the minimum Listing threshold in an organic way. Build the disruptive POET platform, licenses, revenue & the share price will follow. This RS resolution is a mere stick behind the door IMHO.


(0)
(0)




POET Technologies Inc. (POET) Stock Research Links


  1.  
  2.  


  3.  
  4.  
  5.  






Investors Hangout

Home

Mailbox

Message Boards

Favorites

Whats Hot

Blog

Settings

Privacy Policy

Terms and Conditions

Disclaimer

Contact Us

Whats Hot

Recent Activity

Most Viewed Boards

Most Viewed Posts

Most Posted Boards

Most Followed

Top Boards

Newest Boards

Newest Members

Investors Hangout Message Boards

Welcome To Investors Hangout

Stock Message Boards

American Stock Exchange (AMEX)

NASDAQ Stock Exchange (NASDAQ)

New York Stock Exchange (NYSE)

Penny Stocks - (OTC)

User Boards

The Hangout

Private

Global Markets

Australian Securities Exchange (ASX)

Euronext Amsterdam (AMS)

Euronext Brussels (BRU)

Euronext Lisbon (LIS)

Euronext Paris (PAR)

Foreign Exchange (FOREX)

Hong Kong Stock Exchange (HKEX)

London Stock Exchange (LSE)

Milan Stock Exchange (MLSE)

New Zealand Exchange (NZX)

Singapore Stock Exchange (SGX)

Toronto Stock Exchange (TSX)

Contact Investors Hangout

Email Us

Follow Investors Hangout

Twitter

YouTube

Facebook

Market Data powered by QuoteMedia. Copyright © 2025. Data delayed 15 minutes unless otherwise indicated (view delay times for all exchanges).
Analyst Ratings & Earnings by Zacks. RT=Real-Time, EOD=End of Day, PD=Previous Day. Terms of Use.

© 2025 Copyright Investors Hangout, LLC All Rights Reserved.

Privacy Policy |Do Not Sell My Information | Terms & Conditions | Disclaimer | Help | Contact Us