When CTIX was close to 5 which meant that institut
Post# of 72447
Posted On: 06/20/2016 9:43:38 AM
When CTIX was close to 5 which meant that institutions and funds could buy the stock and CTIX would soon uplist, suddenly the Mako article and Rosen BS appeared This might have been coincidence, but I doubt it.
Now we have had to endure a chorus of voices (from people with multiple personality disorder because some of them post with many different screen identities) screaming that the failure to uplist was Leo's fault, and that he should do a reverse split. A reverse split is almost always viewed as a HUGE negative by Wall Street. A reverse split is considered a sign of weakness -- that the company's share price will never get up to a list-able level. Although on paper a reverse split leaves shareholders with the exact same amount of money invested in a company, owning the exact same percentage of the float that they did pre-split, nevertheless the horrible publicity and stigma of a R/S hurts the company's credibility.
ALSO: A reverse split would make it much easier for some people to short the stock, because many online brokerages will NOT let you short stocks that trade at less than 3. So this means that some baby bashers who were unable to short the stock can jump on board once it uplists and is trading at a higher price. I forgot to include that in my lengthy post this weekend about why people were screaming for a reverse split.
SO: Short the company so that it doesn't reach a level where institutions can buy it; then destroy the company's credibility by trying to force a reverse split.
Another issue that no one seems to be mentioning is: what will the size of the float be if there is a reverse split? CTIX's float is currently about 78 million shares. Do a 1 for 4 reverse split and you have a float of 20 million. How does that make any sense?
Who profits from this? Answers: people who want to short the company again, and anyone who wants to make a deal with CTIX, when CTIX is negotiating from a weaker position because the stock price is (unfairly) low.
I think that there are times when a reverse split makes utter sense -- true penny stocks with a giant float that will never be able to uplist without a reverse split. This is not one of those cases. CTIX should be well above 5 RIGHT NOW based on the value of the pipeline.
Now we have had to endure a chorus of voices (from people with multiple personality disorder because some of them post with many different screen identities) screaming that the failure to uplist was Leo's fault, and that he should do a reverse split. A reverse split is almost always viewed as a HUGE negative by Wall Street. A reverse split is considered a sign of weakness -- that the company's share price will never get up to a list-able level. Although on paper a reverse split leaves shareholders with the exact same amount of money invested in a company, owning the exact same percentage of the float that they did pre-split, nevertheless the horrible publicity and stigma of a R/S hurts the company's credibility.
ALSO: A reverse split would make it much easier for some people to short the stock, because many online brokerages will NOT let you short stocks that trade at less than 3. So this means that some baby bashers who were unable to short the stock can jump on board once it uplists and is trading at a higher price. I forgot to include that in my lengthy post this weekend about why people were screaming for a reverse split.
SO: Short the company so that it doesn't reach a level where institutions can buy it; then destroy the company's credibility by trying to force a reverse split.
Another issue that no one seems to be mentioning is: what will the size of the float be if there is a reverse split? CTIX's float is currently about 78 million shares. Do a 1 for 4 reverse split and you have a float of 20 million. How does that make any sense?
Who profits from this? Answers: people who want to short the company again, and anyone who wants to make a deal with CTIX, when CTIX is negotiating from a weaker position because the stock price is (unfairly) low.
I think that there are times when a reverse split makes utter sense -- true penny stocks with a giant float that will never be able to uplist without a reverse split. This is not one of those cases. CTIX should be well above 5 RIGHT NOW based on the value of the pipeline.
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