A number of people PM'd me asking me to explain as

A number of people PM'd me asking me to explain as many people only hear half the story. Here's the other half.

With a RS the number of shares change but also the speed at which the sp can move. That might sound like science fiction, but it's a reality.

To make the math easy, let's say there are 200M OS and a market cap of $34M.
To get to a $500M mc the sp would be $2.5.

Let's say there was a 40-1. Anyone can do the math with whatever number they want.

Now there are only 5M OS (40 times less) so when you get to the same valuation $500M MC, the sp is $100.

Of course you have to factor in the shares for the SC acquisition and others that might happen, but you see how this works. If you look at your end goal of whatever valuation you believe the company will be in X months, the speed at which the sp move will be very different with fewer shares.

With fewer shares, if you felt in 3 months the market cap would be $500M, you would be seeing $1+ gains some days.

$2.5 without one, $100 with one, I don't really care. $100 does sound good though to me either way.

200,000,000 0.17 34,000,000
200,000,000 2.5 500,000,000

5,000,000 6.8 34,000,000
5,000,000 100 500,000,000

Everyone should do their own DD and not get it off a message board. Take this post and do your on math and make your own assumptions.
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