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I have seen that article and they did cherry pick a crop of winners post RS. But...we shall see what happens to the share value of those that ride these splits out. My experience shows it is better to sit them out and wait until the dust settles then get back in the game....
Dilution, I can find no positive for this result unless shares sold into the float produce massive revenue.
Best
CH
The reverse is good for TRTC, just not it's common shareholders...
I think you need to read the whole article on splits.....Forward are bullish, RS is this:
Your article:
Notice carefully that just the opposite conclusion should therefore apply to stocks undergoing so-called reverse splits, in which a company exchanges low-priced old shares for higher-priced new shares. In such a case, management is signalling that it has little confidence that its shares — on their own, without an artificial boost — would soon trade at a higher price.
Sure enough, Ikenberry reports that stocks undergoing reverse splits tend to underperform the market over the several years following the announcements of those reverse splits. A classic example from recent years is Citicorp’s C, +0.41% March 2011 announcement that its shares would undergo a 1-for-10 reverse split. Since that announcement, its shares have gained 17.9%, versus 62.9% for the Wilshire 5000.
The psychology of the reverse split...
100,000 shares and the stock moves up one penny = $1000 gain
10,000 shares and the stock moves up one penny = $100 gain
1,000 shares and the stock moves up one penny = $10 gain
100 shares and the stock moves up one penny = $1 gain
Nobody likes a reverse split....if for no other reason than the psychology of stock movement and profits gained.
Love the company, but... I wish they would find $1 a share organically and manage growth by credit financing supported and paid for by profits. Not on the backs of the common stock holder through dilution with reverses to artificially raise share price..
I want this company back in the portfolio but I am willing to wait out the reverses and the dilution. I believe there is gonna be some great buying opportunities in the future. Also there are some companies that have already reversed and are doing the same thing with dispensaries, recreational and infused products that are way cheaper...and have much more reasonable outstanding and float without the ridiculous market cap. This stock achieves a $1 and we are looking at a 1/2 billion dollar market cap or more...it will be a long time before this company reaches that goal.
Best..
CH
I am back in, all my previous opinions are now reversed...
CH
It looks like the mechanics of the AS increase and Reverse splits are required to shore up the share price as they dilute.....
Hate me if you want, but WTF!!
If you are profitable in the extreme, this amendment should not have been necessary..
The problem remains that this amendment sucks.....
I would rather they grew organically through profit and credit financing. Is this a billion dollar company in the near term?
To approve an amendment to the Company’s Amended Articles of Incorporation to increase the authorized number of shares of common stock and preferred stock to 950,000,000 and 50,000,000, respectively;
To approve an amendment to the Company’s Amended Articles of Incorporation to implement one or more Reverse Stock Splits of the Company’s common stock at an aggregate ratio of not less than one-for-five and not more than one-for-twenty, within the discretion of the Board of Directors, at any time or from time-to-time prior to July [__], 2017;
Never a good idea to fund growth to quickly by paying everyone they owe in shares. Reverse splits that artificially shore up share price for appearances is also not a great idea. Controlled sustained growth supported by profits that support credit financing would be better for the stock and investors.
This stock is shaping up to be a flipper, play the runs and get out. When the business model stabilizes it will be a great long term play.
MHO
CH
If insiders decide to grab some more cash by selling into the float you could see a major price decline. If not...below mid .30'S will not be likely.
IMHO
I agree with you...this is good. They need to clean up the horrible float and try to move this company into a better footprint for potential up listing. Longs turn off your computers, flippers look for better entry points, shorts break out the champagne....
Great company making the moves to change the playing field into something not resembling a lowly penny stock....
I want in after the first reverses happen.
CH
This is the problem....read carefully
4. To approve an amendment to the Company’s Amended Articles of Incorporation to increase the authorized number of shares of common stock and preferred stock to 950,000,000 and 50,000,000, respectively;
5. To approve an amendment to the Company’s Amended Articles of Incorporation to implement [color=red]one or more Reverse Stock Splits of the Company’s common stock at an aggregate ratio of not less than one-for-five and not more than one-for-twenty, within the discretion of the Board of Directors, at any time or from time-to-time prior to July [__], 2017;[/color]
Love the company....hate these amendments..
Now read carefully, I AM FOR THESE CHANGES THEY ARE GOOD FOR THE COMPANY, BUT NOT FOR THE COMMON SHAREHOLDER IN THE SHORT TERM.
CH
I am not a basher...but, I have never liked a reverse split. I know it is smoke and mirrors and doesn't change the capital value of the stock. But, they are rarely a good sign and carry a psychological connotation that no investor really loves. The increased authorized shares do not help. The possibility of not just one reverse split more than one at the discretion of the preferred shareholders that are exempt from the splits doesn't bode well for common shareholder morale. I have to ask...if RS's are so great then why do the preferred shareholders get a pass? If all is the same for everyone it should not affect the voting ratios. This company is in acquisition mode and that is a good thing. I still think it is one of the best opportunities out there in the pot arena. But they really took the wind out of a lot of investors sails with the amendments they announced.
If the stock is so good why couldn't make pps number naturally? It only had to stay over a dollar. The insider selling didn't help either but I get it..people need to get paid.
Looking for a much lower reentry point in the face of these announcements....
Best of luck longs and all....
Re-entry mid .30's board was hilarious..Luck all..
OMG the sheep weapon just slaughtered me....LMAO
WarChest..I will give you this, you do have flair and style when it comes to bashing. But holy crap the majority of trtc
stockholders will never see a single post from you. I totally do love that song...nice touch!!!
LMAO
Took profit waiting for new entry point.....
Good luck all..
Gotta admit..nice strong base...at .48
Looking for a re-entry point....just got a 500mg bottle of PlusCBD. Now my 3rd month using their products. Not crazy about the FDA plans cost wise or time wise. In the meantime current product sales will support the endeavor. Really like this stock...and TRTC if it avoids the reverse split...
Best
Post number 117371 details this old news for anyone interested.
Hey...please site links and sources for you claims.
Do reverse stock splits help or hurt the small-cap investor?
Why would a company undergo a reverse stock split? There are a number of reasons why a company would decide to initiate a reverse split. Some of the most often discussed are:
Keeping the share price above $1/share in order to maintain or gain compliance with NYSE or NASDAQ listing requirements.
Attempting to extend the life of a slipping stock. If a stock sees little in its future, a reverse split can maintain a stock's reputation at face value.
Raising the stock's status above the penny stock mark. Some companies have a fear of being labeled a penny stock, and some big investors have a fear keeping them from investing in lower-priced issues.
So what does this mean? Two of the three reasons listed above are efforts of desperation. A stock that fails to raise its share price above $1/share without a reverse split may not be such a great investment.
This is the part I do not understand, why would TRTC think they cannot raise the share price naturally? Unless acquisitions and growth are projected to cause to much dilution maybe??
The third reason listed has some validity to it. A company that trades above $5/share is far more likely to see increased fund ownership and brokerage coverage. However, once again, keep in mind that many of these funds and analysts are looking for more than just a stock's price. They also consider a company's financial background and stability.
Can a reverse stock split be beneficial? Yes, but that is usually the exception.
Keep in mind that sellers of federally illegal substances have quite a hurtle to get listed on the Nasdaq, to date none have....
Thanks to all that responded to my queries over the impending reverse split possibility. Great opinions left in my mailbox.. Seems like a lot of individuals feel that the momentum will carry the day no matter what they do at TRTC.
Good 2 know...
CH
So the consensus here from the longs seems to be buy your shares and turn off the computer. I can dig that....
Best
CH
And honestly, if you don't think RS's do not have a negative effect on stocks look again. It can go both ways though, I will admit that.... Technically it does not affect share value or market cap. But wow, what radical swings they cause. If you are forever long on this stock shouldn't be a problem.
Wasn't looking for a fight, should have known better....
CH
Manipulated by filings with the SEC and looking for discussion on a public forum for enjoyment and enlightenment from others. You are right it truly is pumped and bashed...but, you can gain some insight if you put your BS filter on high....
Good luck all...
CH
Thank you for a lucid, well articulated nugget of sanity regarding this company.
Miss Demeanor...Read this quote and link:
I quote from the company released sec filing as follows:
To approve an amendment to the Company’s Amended Articles of Incorporation to implement one or more Reverse Stock Splits of the Company’s common stock at an aggregate ratio of not less than one-for-five and not more than one-for-twenty, within the discretion of the Board of Directors, at any time or from time-to-time prior to July 2017
https://www.newcannabisventures.com/publicly-traded-cannabis-company-terra-tech-makes-2-key-sec-filings/
CH
What r u talking about??? Are you hitting the pipe?
Multiple reverses at the discretion of the preferred stock holders on the board that are exempt from the effects of an RS. I was thrilled to have a position in this stock until that little tidbit was divulged. I mean is anyone concerned by this?????? I thought it would crash the stock. So far I stand corrected. I am game to get back in if I am wrong or confused somehow.
Anyone care to comment on how to navigate multiple RS's between now and July 2017? It reads that whenever they deem it necessary they slap a reverse on us....
I quote from the company released sec filing as follows:
To approve an amendment to the Company’s Amended Articles of Incorporation to implement one or more Reverse Stock Splits of the Company’s common stock at an aggregate ratio of not less than one-for-five and not more than one-for-twenty, within the discretion of the Board of Directors, at any time or from time-to-time prior to July 2017
I mean am I missing something????? Holy shiiit does this bother anyone else??? or am I in the twilight zone of investing???
Honest question....
I got out because of the impending reverse split and the increase in authorized shares that they clearly intend to use... I am confused as to how others continue to play this stock long. Are you going to hold through the RS? The intent seems to be to shrink the outstanding share count and then issue more shares at a higher price to finance further growth and possibly facilitate an up listing to the NAS. I get all of this and applaud the company for the intent to strengthen the company and orchestrate further growth. No problem....
But...it appears to me that this will be at the expense of the common stock holder. We are talking RS then dilution. Please explain some of your ideas on how to hold long through these changes and come out on the other side with a smile. I am reading all over the place that there are grave concerns about this strategy being a benefit for the common shareholder.
Why doesn't trtc just let the company increase in value over time and let the outstanding share numbers ride? I mean if there is that much money on the horizon why the RS?
At $2 with the current share count the company would have nearly a billion dollar market capitalization. Believable???? If so why the RS?
Please comment on your strategy to ride this stock upward. They clearly have a great future, but... is now the time to sit out for awhile until these changes take place?
CH
Whats good for TRTC.....
The reverse split and the authorized shares are good for this company. I am glad they are doing it, but the preferred shareholders are completely protected from the fallout. The common shareholder always get it up the...
There are a lot of uninformed investors that are this stock without that knowledge and probably don't care. This amendment and will raise the price per share to complete one of the requirements for up listing to the NAS. All good for TRTC....a new share offering to investors with deeper pockets and possibly institutional ownership as well. All good for TRTC.......
For the common investor at the lower end of the food chain...not so good. Dilution will always be dilution...
20,000 shares becomes 1000 shares....Reverses are never good for the common stock holder no matter how they sell it. I think TRTC still has upside until this happens. Once it happens I would jump ship until the price settles down...and then to the moon Alice.
MHO
CH
I truly want think this is the best stock out there for the green rush. But I just can't see staying in with the RS on the table and the disregard for the common stock shareholders. The preferred shares are exempt from the reverse split. Raising authorized and reversing at the same time shows the intent. Not a basher..love this stock their assets and the business model. I really to play this stock further but I to am now on the sidelines until the proxy votes and amendments are over.....
Sold my position this morning. Looking to get back in when it is a more favorable environment to the common stock holders....
Best of luck all....
CH
Insiders Continue to Sell Stock
Company insiders have sold $950,000 worth of Terra Tech stock during April and this is something that we are monitoring closely.
Although we do not think it looks good when insiders (especially executives) sell stock, most of these insiders have been with the company since the beginning and they do not receive huge salaries. The recent rally created a good opportunity for insiders to bring in capital and we will monitor this trend going forward.
On the Sidelines…For Now
We are currently on the sidelines with TRTC but we are favorable on the company’s recent developments. While we are favorable on the company’s opportunity, we are not completely sold on its ability to be a successful public company because 2015 financial results show a $46 million accumulated deficit.
At the time of this disclosure, TRTC had a working capital deficit of approximately $523,600 and a cash balance of approximately $418,000. The company expects that its existing and available capital resources will be sufficient to satisfy needs through the third quarter of 2016.
Less than a month ago, Terra Tech announced plans to raise up to $75 million through the sale of stock, options, warrants, and other securities. We do not expect to see the company raise even half of the $75 million and we expect this raise to be dilutive to current shareholders.
Reverse splits the good....
Take a look at these companies and the results in price value percentages after the split.
http://www.cnbc.com/id/42212417
A RS may be okay with this company with the money that is getting ready flood the market after legislative actions take place at the end of 2016.
The change in pps can help to meet one of the uplisting criteria. The share price itself.....
Other penny stocks can only dream of 11 million in annual sales. Bad debt and stock compensation are normal....but it does get added into the loss column. Expansion, acquisition and new employees all cost.
They still look pretty good in comparison to some of the other inflated cannabis offerings that are over 2$ with not a lot on the table.
CH
For 2016 CANV's inventory levels are sufficient to support their sales so the company doesn't plan to purchase raw inventory from its supply chain arrangements. They will need to find around $1.5 million over the next 12 months in order to support the pharmaceutical business segment, though. At the very end of last year CANV acquired two product candidates after completing the acquisition of CanX, Inc. and it hopes to file an Investigational New Drug application with the FDA in the future.
Hey 1990...Take a look.
In order to answer the question let's see CANV's results for 2015. As of December 31, 2015, the company had:
• $518 thousand cash
• $16.6 million total current assets
• $2.45 million total current liabilities
• $11.53 million net sales
• $12.23 million net loss
For a pennystock CANV's balance sheet contains some impressive numbers and some "not as good" ones. The cash reserves are down by nearly five times (but they are fully stocked with bulk oil for the entire year and they have increased sales staff and other employee positions) while the current liabilities have increased by close to four times. It should be noted that the increase of the net loss was partly caused by a significant non-cash expense of $6 million as stock-based compensation and over $2.6 million recorded as bad debt or namely companies that owed them and skipped out on the bill....
They have also acquire two comapanies CANX and CANABINE which will hopefully position them with a run at the FDA and IND Investigational New Drug status...namely synthetic cannabinoids. Take a look at GWPH.
They are averaging nearly a million a month in gross sales....
IMHO they have a shot at making it....
CH
I just ordered another bottle of CBD Plus 200mg Cannabidiol Peppermint Flavor Spray. Ya gotta try it....it has helped me considerably. CV has income! How many pennies can say that? Cannabidiol sales can keep them alive while they continue to work on other endeavors. At least keep some of this stock on the sidelines while the FDA attempt develops....
CH
Once this FDA news sinks in I believe we may see some stability until that news either manifests itself in positive results or not.... CV Sciences is trying to play in the same arena as GWPH. Contemplate that for a bit.
CH
CV Sciences (Cannavest)acquired two product candidates in the CanX Acquisition, each utilizing synthetic CBD as the active pharmaceutical ingredient. Both product candidates are currently in preclinical studies. The Company is hopeful to be in a position to file an Investigational New Drug application (“IND”) with the U.S. Food and Drug Administration (“FDA”) in the future. We expect to meet with the FDA during 2016 to determine the extent of any further required preclinical work prior to commencement of a clinical program. The Company’s product candidates are based on proprietary formulations, processes and technology that we believe are patent-protectable, and we plan to vigorously pursue patent protection on the Company’s two drug candidates.