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Re: j45 post# 43434

Tuesday, 11/24/2015 11:59:11 AM

Tuesday, November 24, 2015 11:59:11 AM

Post# of 104411
True % ownership ends up the same and your initial value is the same, but tell me if I am wrong in this scenario and I will also let the RS discussion die off again:

SH has one million shares at .14 SP for a value of $140k. QTMM gains sales and the SP goes to $1. SH now has value of one million dollars. A gain of $860k or a gain of over 700%.

RS of 1/10 would reduce this SH to 100k shares and boost the SP to $1.40. Lets even go as extreme as saying with sales the SP then skyrocketed to $5.00. The SH would then only have 500k in dollar value.

I am not saying a R/S is never good for a company or investors, but how could it possibly be good for Longs hoping for massive returns on their risk.

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