The flaw in that logic is like the dot com bubble
Post# of 36537
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Posted On: 07/05/2019 12:51:26 PM
Re: OrlandoJohn #4537
The flaw in that logic is like the dot com bubble in 2000-2002. Bring on new customers, sell at a loss, and hope to make it up in the future since you have more customers. But that doesn't work.
What I mean is, you are getting double the shares, but you will have less money in your porfolio. You instantly lose 12-13% of your position value. Hopefully that will be made up by the fact of being on Nasdaq and the price driving up by new investors there. But don't lose sight that you are getting diluted, albeit hopefully very temporarily, but 12-13%.
Don't get me wrong, this is absolutely the best thing for Joe to do, but like I said back in November, the price will be adjusted accordingly by the exchange.
What I mean is, you are getting double the shares, but you will have less money in your porfolio. You instantly lose 12-13% of your position value. Hopefully that will be made up by the fact of being on Nasdaq and the price driving up by new investors there. But don't lose sight that you are getting diluted, albeit hopefully very temporarily, but 12-13%.
Don't get me wrong, this is absolutely the best thing for Joe to do, but like I said back in November, the price will be adjusted accordingly by the exchange.
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Disclaimer: Of course, all of this is my opinion and you should not make any investment decisions based on my opinion. I have not received any non-public information.
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