Merridan:ure singin to the chore here. ihm folks see R/S and they see a death knoll, but as you point here, and as I tried to point out two days ago on RB's board, it can occassionally be very healthy. *The boards certainly get hostile at the mere suggestion, they treat you worse than a basher or short,lol On RB one poster called me a clown, and idiot for suggesting such a thing 2 days ago. It is just the RS stigma I guess. As if I want to dilute value on my small but valuable 30k shares, yeah right.
On RB I suggested the following and was almost tarred and feathered lol:
1. Many Institutions and funds want stocks at a min SP of $5 & $10. In most cases, they are legally obligated according to by- laws not to go below those min prices when buying in to an issue.
2. The listing on major exhanges, which again *heightens demand and *hence SP due to visibility *is made far easier.
3. The market cap is increased as a result of the above. EPS is increased with fewer shares. Price to earnings ratio should become more favorable due to *heightened financial credibity, not being a micro BB stock.
4. RS s are viewed negatively, imo, because many times firms *have to do them for the wrong reasons, as a result of total mismanagement, poor-non funding and low marketcap, as well as SP concerns. *WS hates uncertainty, and transparent false credibility. Couple this with the post RS survival rate track record which is miserable.
ERHE, *if* it ever did one would be *doing it for the right reasons **with cash and with proven $ value of assets, and possibly even with a good current ratio and to aid in meeting listing requirements. Imho it *could* serve shareholders, but I doubt if many will ever see it that way due to the chronic RS stigma and shareholder fear.
***On RB you are frequently mentioned and well respected by many. I would like to personally thank you for your previous insights since they have helped greatly any that would listen.
BOL - Keep up the great work!
