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Re: gman22 post# 70879

Friday, 12/12/2014 4:20:34 AM

Friday, December 12, 2014 4:20:34 AM

Post# of 130746
I do not think this.
Here the facts: 5B shares A/S O/S 0.5B shares in the float.
If you own the float, you own 10% of the O/S.
If O/S A/S decrease to 3B, you won 0.5/3 = 16% of the O/S

I terms of pps:
- as pps does not reflect an intrinsic sport value but more the price which people are ready to pay for a pie which is expected to growth so we can not determine the effect but we can guess it should be positive.
All things remaining the same, we have:
current total value of the 5B shares = 5B*0.05= 250M
future pps could be 250M/3B shares = 0.083 so an increase of 66%

At least this is how I understand the situationl Feel free to correct me.


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