$RNVA Credit BIDSMAKER1 Lots of talk about AS
Post# of 895
1. Acquisition of 2nd hospital with May 1 closing date.
Results No RS or AS increase needed for May 1 closing. Acquisition increase of revenues not only from the hospital but also from 15 subsidiary labs. Conservative estimates are $40 million in revenues.
2. Spin off = free shares, value unknown but solid revenues mean share value. For example, take the number of shares you own and multiply that number by a hypothetical number of .04 (IMO only) That's free money.
3. Debt restructured
4. CEO plans to return to NASDAQ, stated goal.
So lets just say the RS is approved by shareholder votes or lack thereof.
What's the likely outcome. Well nothing immediately and also not likely to occur in the next 6 months to a year or so; if at all, and at that point what would even necessitate any need for a RS? Increased cash flow, uplist to NASDAQ, no RS needed IMO.
How about AS increase. What's the worst that could happen? SAME REVENUE STREAMS or increased revenue streams, however there is a difference. Yes, your shares would be diluted and yes the shares could be used for financing additional acquisitions (more hospitals?) and Yes the shares could be converted and enter the market which on OTC almost always drives PPS down. But lets not forget the stated objective of uplisting to NASDAQ. Then what happens? Don't forget that NASDAQ requires certain asset valuation and price per share, fully reporting company, etc., Also, look at analysts values 12 months out. I have seen anywhere from $18.00 to $550.00 PER SHARE
This is the bottom line. No matter what happens here on April 18th if you are a shareholder the best strategy IMO is buy dips and hold. There are shareholders that will decide to sit it out and come in after the 18th. They will close out their positions and hugely lose out if the AS and/or RS are not approved and even if an RS is approved it does not mean you lose any actual value on your shares since shares are simply converted depending on the split ratio. Another reason RS is unlikely to happen is the PPS is not high enough that a RS would benefit the company.
So what are you left with when the dust settles? That's easy.
You have shares in a company with huge upside potential that will very likely be traded on NASDAQ in the relatively near future. Analysts have pretty high expectations from what I have seen. At these ridiculous low prices I buy as many shares as possible and hold on for the ride.
So with RS or AS or both, if approved, IMO, it's an incredible opportunity that has enormous upside potential either way. Just a reminder though. If no RS or AS approved then the rapid price increases over the last week or so are absolutely IMO just he very beginning. I have seen this before and you don't want to be the one reading about it after you missed the amazing gains that IMO can happen.
Like I said before. This could be an epic opportunity. Now its up to you. You decide.
All the above is my opinion only. I welcome all viewpoints and opinions and thank you for considering mine. Don't use any of my opinions as a basis to buy, sell or hold any stock at any time. Do your own due diligence. Make decisions based upon your personal risk/reward tolerance, not on mine.