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Re: A deleted message

Saturday, 01/17/2015 6:01:09 PM

Saturday, January 17, 2015 6:01:09 PM

Post# of 130516
You pose a fascinating scenario, in my opinion. I'm a bit confused when you speak of a reverse merger in the same breath as a reverse split. I'm positive you know the difference and assume you forgot that you're not as old as I am. lol

My cardinal rule: When in doubt, don't!

In this instance that means our smartest move may well be that of waiting until after a split, should it occur. People have no way of establishing post-split value. Because this confusion is rampant, why not wait until at least some doubt has been erased?

This is why I suggested earlier that we give things time to settle. Without visibility, we stand to throw money into a vacuum.

Reverse splits are designed to increase opportunities for expansion and profitable developments. By the same token, forward splits are aimed at providing greater opportunity for investors to participate in the purchase of positions not possible earlier due to an uncomfortably high share price.

AMBS shares are around eight cents at present. I hold 80,000 share at the moment with a flat profit/loss situation. A reverse split on a 50:1 basis would have me holding 1,600 "new" shares, each representing a value of $4 barring market swoons and such.

The question we face is this: How do we feel about holding the final number of shares we're awarded? In my case, 1,600 shares wouldn't seem satisfying enough to me and I'd probably be watching for chances to add another 400 shares at below the new price of $4.

This sort of split will not necessarily benefit any of us until the company has put incoming cashflow to work. There is no mathematical advantage to owning a single $4 share or 50 8-cent shares. The sole caveat I can see in all this is that the more shares we own in any publicly traded company, the better we will do if and when the company prospers. However, this will apply regardless of the price paid for our shares.

I hope this doesn't bore everyone. My wish is to draw this out in simple language so that everyone here can feel comfortably up to speed.