Replies to post #37540 on SNM Global Holdings (SNMN)

[MIKEY501]

Why are you even posting on this board after the illegal fraudulent stunt you pulled yesterday? Maybe they admins need to just ban you from IHUB. That was illegal what you did yesterday and you are lucky being removed as a mod was the only thing you have suffered so far.

[$PennyMover]

Helpful Explanation.......


Secondary Offering

Selling new stock to investors to raise capital is called a secondary offering. When a secondary offering is announced, the stock price usually drops. The most typical reasons are dilution, investor perceptions and company actions surrounding the offering.

Dilution

When a company issues new stock, it increases the number of shares outstanding. Its earnings per share go down because the same amount of net earnings must now be divided by more shares outstanding. Investor stakes and share values are diluted. The larger a secondary offering, the greater the dilution.

Topping Stock Price

A company’s goal is to raise as much money as possible at minimal cost. The higher the stock price, the fewer shares a company must sell to raise the same amount. Since insiders know their companies better than anyone else, investors believe that secondaries often take place when the stock price is as high as it can get and start selling to lock in profits, pushing the stock price down.

Offering Price

If the offering price is significantly below the current stock price, investors who paid higher prices for their shares feel short-changed by the management, sell the stock and stay away from it. If a company loses investors' trust, its stock may languish for a long time as disgruntled investors stay away from it.

[Serpico2005]

Exactly his credibility went right down the tubes he sold out right from under us at a fifth of the price.

[Pharaoh-1]

I am not sure if there is denial here and some can't fathom the disastrous move of yesterday by the company - the PPS dropped because of the company's action, it has nothing to do with the posters here. And quite honestly, I am not even sure if they will do this same thing of selling at 0.001 again and again to raise money since it seems easy to change terms at will. Decreasing AS, and not re increasing them, as promised for looooong time might be a good start to regain confidence, not by tweeting, but by filings. Dilution kills value esp. at such low prices.

[marknet]

Agreed 100%. I sure don't trust the guy and was dumb enough to buy more shares in the .004s then get flushed out by his big bait and switch. I'm sure some big news will hit this week at some point and this will probly go back to .005 or so then who knows? Troy will do what he can to line his own pockets.

[Pharaoh-1]

I agree with your opinion - it was logic.