Assuming for the moment there is a R/S can anyone
Post# of 3844
Posted On: 09/10/2014 3:32:24 PM
Assuming for the moment there is a R/S can anyone hazard a guess based on EWSI's stock structure what it might be - 1/5, 1/10, or higher?
And can anyone comment on why EWSI would, or has, to do a R/S? Are the bashers just using scare tactics or is there a point where a company has to adopt a R/S in EWSI's position. I ask this because there must be strategies to prepare for one. For example, if EWSI is virtually forced to do one as some say to rise from the ashes, even given eventual China success, then loading up in the low trips for not much money could be a way to own so many shares before the R/S that the 20% left afterwards (given a 1/5) is still enough to recoup losses when the PPS gets back into the pennies. All predicated on China revenues getting the PPS back to these levels of course.
For example: Hedging the bet
$500 divided by .0002 = 2,500,000 shares. A 1/5 R/S leaves 500,000 shares which at .02 is $10,000. So being down $10,000 now means recouping it all when EWSI reaches .02 on the strength of China success, for only an additional $500 cost, a small amount when you're $10,000 down. As soon as EWSI can show China revenues (say a few million to start) and any kind of growth projections from there I think it's an easy bet pennies will return. At current shares owned, however, and after a 1/5 R/S EWSI has to go to a dime to recoup.
Anyone else with confidence in EWSI thinking along these lines?
And can anyone comment on why EWSI would, or has, to do a R/S? Are the bashers just using scare tactics or is there a point where a company has to adopt a R/S in EWSI's position. I ask this because there must be strategies to prepare for one. For example, if EWSI is virtually forced to do one as some say to rise from the ashes, even given eventual China success, then loading up in the low trips for not much money could be a way to own so many shares before the R/S that the 20% left afterwards (given a 1/5) is still enough to recoup losses when the PPS gets back into the pennies. All predicated on China revenues getting the PPS back to these levels of course.
For example: Hedging the bet
$500 divided by .0002 = 2,500,000 shares. A 1/5 R/S leaves 500,000 shares which at .02 is $10,000. So being down $10,000 now means recouping it all when EWSI reaches .02 on the strength of China success, for only an additional $500 cost, a small amount when you're $10,000 down. As soon as EWSI can show China revenues (say a few million to start) and any kind of growth projections from there I think it's an easy bet pennies will return. At current shares owned, however, and after a 1/5 R/S EWSI has to go to a dime to recoup.
Anyone else with confidence in EWSI thinking along these lines?
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