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Re: danceswithcharts post# 132617

Monday, 04/20/2015 3:40:32 PM

Monday, April 20, 2015 3:40:32 PM

Post# of 148335
Correct. Simple math.

The "wiped out" version of any PVEC R/S is reflects a potential aspect of a R/S... further financing operations.

A R/S typically happens for a pinkieland investment that has NO FINANCING VALUE. A bloated O/S (billions) does not offer much share trading worth in obtaining further operational funding from an A/S which would continue to swell the O/S.

In that example, when the R/S occurs and the O/S AGAIN starts to swell to obtain needed operational financing, the R/S pps that reflected the 'original' bloated share value divided by the R/S reduction factor (1 for 10, 1 for 100, etc) begins to drop AGAIN. Therefore, previous share value carried forward as a result of a R/S is reduced EVEN MORE...thus the 'wiped out version'.

HOWEVER, if as the result of the R/S, the share value carried forward is boosted by a NEW business plan or even non-diluting financing arrangements being attained...the result is that the R/S remains stable with the pps price rising...well then, the original investors have their purse increase in size...not wiped out but rather share price appreciation.

I have had both... A R/S should NOT preclude "wipe out" but rather indicate a change of share structure ONLY requiring further substantiation through factual information as to what direction the pps will head AFTER the R/S.

If the news is good, pps will rise with investor gain. Bad... lower pps and that wipe out will be on its way.

I have not heard anything that tells me it will be one way or the other.