InvestorsHub Logo
Followers 179
Posts 35357
Boards Moderated 20
Alias Born 04/17/2013

Re: Axel post# 11061

Sunday, 10/02/2016 7:22:33 PM

Sunday, October 02, 2016 7:22:33 PM

Post# of 14986
No, that's false. If the R/S is small, like 1 for 2 to 1 for 5, companies will leave the AS unchanged.

For larger ratios, like 1 for 25 (or 1 for 25.1, as NTEK recently did) or more (like HIPH's two 1 for 1000 RSs) the company reduces the AS. Nott by the same ratio (for example, NTEK did a 1 for 25.1 RS and in parallel reduced the AS by a factor of 4). It is usually done as a sop to shareholders to take the sting ~OUTT of an RS. It also somewhat improves market perception by reducing the AS.

I expect sumbuddy better wake up Recliner Timmy and gett him to read this post and cutt the AS by a factor of 4 or 5.

Unless he's really expecting a 30-fold increase in the OS coming. That's the only reason NOTT to reduce the AS.