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  4. Trans-Pacific Aerospace (TPAC) Message Board

All interesting comments on the pps. If you're hap

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Post# of 22940
Posted On: 07/16/2016 6:56:54 AM
Posted By: corporatexpress
All interesting comments on the pps. If you're happy about the pps dropping so you can buy more shares you may be in for a rude awakening. The problem with the pps at sub penny levels and an OS close to the AS amount is that with more funds needed to run the business w/o revenues providing those funds, an RS becomes almost inevitable. The RS doesn't change the value of your stock, but when the OS gets reduced by the split, it's for a purpose: to issue more shares. So more common shares are issued after the split and the OS doubles or triples without having to change the AS. This in no way means the business is doomed, at least not with TPAC. TPAC has the potential to go all the way as an international aerospace firm. I believe it will. But make no mistake, the common shareholders are not typically the benefactors initially when the stock is subjected to reverse splits because the OS is in the billions and the company needs more funding while it's in the infancy stage. I know Bill said no RS, and no doubt that's the last thing he wants to do. I think he appreciates us as investors and tries to give us as much news as possible. But business is business and when push comes to shove, what's more important? Your business (your livelihood) or your investors? That's one reason why preferred shares are more desirable than common shares.

So hope for a higher pps, not a lower one.

Just a thought...


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JonnyBGood




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