Someone correct me if I am wrong. We are all obvi
Post# of 36566
(Total Views: 268)
Posted On: 09/27/2019 7:12:22 AM
Someone correct me if I am wrong. We are all obviously disappointed that OTC did not adjust the price by dividing fewer shares into the existing market cap. Therefore, we did not receive the expected windfall
However, a big deal is always made when a stock on a major exchange announces a buyback. That means stocks are purchased by the company and removed from the float. Although the increase in the pps is not immediately evident, going forward there are fewer shares available for purchase. Supply and demand necessitate that the pps increases, as long as the company continues to deliver on its top and bottom lines and guidance going forward is positive.
Won't the same thing eventually happen to GNBT? Some, but not most of us, may have purchased shares for the hoped for the immediate bump in the pps. When they didn't get it, they sold. Most of us have invested in GNBT for its business plan and the sea change MMPJoe and mgmt. have implemented. A year ago none of us could have envisioned the current scope and nature of this investment. If they continue to deliver, as any other legitimate company, demand should exceed supply (more quickly due to the retired shares) and that demand should ultimately be reflected in the pps. Of course, if they disappoint, the opposite will occur, despite the reduced number of available shares.
Does that make sense?
However, a big deal is always made when a stock on a major exchange announces a buyback. That means stocks are purchased by the company and removed from the float. Although the increase in the pps is not immediately evident, going forward there are fewer shares available for purchase. Supply and demand necessitate that the pps increases, as long as the company continues to deliver on its top and bottom lines and guidance going forward is positive.
Won't the same thing eventually happen to GNBT? Some, but not most of us, may have purchased shares for the hoped for the immediate bump in the pps. When they didn't get it, they sold. Most of us have invested in GNBT for its business plan and the sea change MMPJoe and mgmt. have implemented. A year ago none of us could have envisioned the current scope and nature of this investment. If they continue to deliver, as any other legitimate company, demand should exceed supply (more quickly due to the retired shares) and that demand should ultimately be reflected in the pps. Of course, if they disappoint, the opposite will occur, despite the reduced number of available shares.
Does that make sense?
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