R/S ratio it will not impact price to earnings rat
Post# of 22465
(Total Views: 596)
Posted On: 06/28/2021 7:45:34 AM
Re: Puravida19 #20159
R/S ratio it will not impact price to earnings ratio, P/E depends on company market capitalization.
Market cap is now ~30M per Yahoo Finance; because there are 701million outstanding shares and currently shares are priced $0.0425.
Whatever the reverse split ratio is, market cap stays the same. 10:1 gives 70.1million shares at $0.425; 100:1 gives 7.01million shares at $4.25 per share.
So R/S ratio doesn't matter, what matters most, will there be solid business fundamentals in future filings (actual revenue?, revenue outlook?, meaningful cash position? What projects are alive or dead). Will the company survive this period where we have 0 visibility in its health? Will the Pasaca deal stand, do/did they walk away, do they take them private?
I has the appearance of big upside possibility, lots of optionality, but it is an ultra risky bet with the information publicly available.
Market cap is now ~30M per Yahoo Finance; because there are 701million outstanding shares and currently shares are priced $0.0425.
Whatever the reverse split ratio is, market cap stays the same. 10:1 gives 70.1million shares at $0.425; 100:1 gives 7.01million shares at $4.25 per share.
So R/S ratio doesn't matter, what matters most, will there be solid business fundamentals in future filings (actual revenue?, revenue outlook?, meaningful cash position? What projects are alive or dead). Will the company survive this period where we have 0 visibility in its health? Will the Pasaca deal stand, do/did they walk away, do they take them private?
I has the appearance of big upside possibility, lots of optionality, but it is an ultra risky bet with the information publicly available.
(1)
(0)