Dave, there has been no evidence that Gerald is ta
Post# of 30066
Posted On: 08/13/2014 1:17:16 PM
Re: Daveludlow #3688
Dave, there has been no evidence that Gerald is targeting a $4 share price which would result from your 1:40 RS scenario at 10 cents. The only number he's ever mentioned regarding uplisting came from last year's conference call where he specifically mentioned the $2 requirement.
I understand your thoughts on the $4 or $5 price required to purchase on margin, but I don't seriously believe Gerald would intentionally reduce his own or his father's shares by an additional factor of 2 just to satisfy those wanting to buy on margin, including the brokers.
If an investor required a $4 price to buy on margin, and wanted to invest $1M at 50% margin, he could effectively buy $2M in shares, equaling 500,000 shares bought on margin.
If the initial listing price was only $2 and the broker couldn't buy on margin due to the price being below the minimum margin able price, he would still be able to purchase 500,000 shares for the same $1M investment.
Sorry, but I don't see the advantage of the higher share price here when the numbers work out the same. Because of this, I don't feel Gerald will be compelled to uplist in the $4 or $5 range that has been suggested. With the buffer already built into the $1 minimum price to remain listed, and the 180 day buffer following a delisting notice if price falls below $1, I feel they will target any RS closer to the $2 price required to minimize their own and shareholder reduction in number of shares.
I do share your thoughts on waiting to see what catalysts are met before we vote. While I'm generally positive about the AS increase and the reasons, let's see if the company can deliver on expectations they set before voting for the increase.
I understand your thoughts on the $4 or $5 price required to purchase on margin, but I don't seriously believe Gerald would intentionally reduce his own or his father's shares by an additional factor of 2 just to satisfy those wanting to buy on margin, including the brokers.
If an investor required a $4 price to buy on margin, and wanted to invest $1M at 50% margin, he could effectively buy $2M in shares, equaling 500,000 shares bought on margin.
If the initial listing price was only $2 and the broker couldn't buy on margin due to the price being below the minimum margin able price, he would still be able to purchase 500,000 shares for the same $1M investment.
Sorry, but I don't see the advantage of the higher share price here when the numbers work out the same. Because of this, I don't feel Gerald will be compelled to uplist in the $4 or $5 range that has been suggested. With the buffer already built into the $1 minimum price to remain listed, and the 180 day buffer following a delisting notice if price falls below $1, I feel they will target any RS closer to the $2 price required to minimize their own and shareholder reduction in number of shares.
I do share your thoughts on waiting to see what catalysts are met before we vote. While I'm generally positive about the AS increase and the reasons, let's see if the company can deliver on expectations they set before voting for the increase.
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