If needed to do so, raising the AS is in the best
Post# of 9964
Posted On: 04/23/2015 10:43:32 AM
If needed to do so, raising the AS is in the best interests of shareholders at this time. The only reason a company would chose to initiate an RS is to elevate the stock price in order to qualify for a higher exchange, or to attract institutional investor that will not invest in companies not meeting certain minimum stock price requirements.
Based on the history of OTC stocks, the current financial condition of Marani Brands would not support a mechanically elevated stock price at this time. If they were to initiate a RS the pps would once again plummet, thereby devastating shareholders. Only ones wanting an RS at this time are individuals/ predatory entities wanting to short the stock after a possible initial post RS small run.
I've seen it happen over and over again on the OTC. After a few weeks/months the price declines once again below the minimum where companies qualify for being listed on a higher exchange, and below the pps in which institutional investors would be interested. Company is back to square one and shareholders are holding a smaller piece of the pie.
Conclusion, when revenues/income increase to the point that they can sustain operations, that is the optimum time for a company to consider a reverse stock split...
Chewie
Note; My comments in this posting are just "opinions," Please make your own investment decisions. Happy trading, and best of luck to you with achieving prosperity.
Based on the history of OTC stocks, the current financial condition of Marani Brands would not support a mechanically elevated stock price at this time. If they were to initiate a RS the pps would once again plummet, thereby devastating shareholders. Only ones wanting an RS at this time are individuals/ predatory entities wanting to short the stock after a possible initial post RS small run.
I've seen it happen over and over again on the OTC. After a few weeks/months the price declines once again below the minimum where companies qualify for being listed on a higher exchange, and below the pps in which institutional investors would be interested. Company is back to square one and shareholders are holding a smaller piece of the pie.
Conclusion, when revenues/income increase to the point that they can sustain operations, that is the optimum time for a company to consider a reverse stock split...
Chewie
Note; My comments in this posting are just "opinions," Please make your own investment decisions. Happy trading, and best of luck to you with achieving prosperity.
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