Monday, June 26, 2006 2:04:33 PM
N00b question. Pros can ignore.
In the context of a reverse split, you mention that the total O/S should be in the 1-2 billion range. Is that an industry convention or is there some reason why that range is preferable?
I suspect it has to do with a target pps. Is there a minimum price at which the big boards will accept a stock?
Furthermore - The market cap of Netflix (an example of a successful company in a similar market space at GZFX) is about 1.6 B with some 65 million fully diluted shares. Why then would GZFX need/want 1-2 Billion shares (after a hypothetical RS)?
Again - not disputing, just inquiring! - Thanks.
In the context of a reverse split, you mention that the total O/S should be in the 1-2 billion range. Is that an industry convention or is there some reason why that range is preferable?
I suspect it has to do with a target pps. Is there a minimum price at which the big boards will accept a stock?
Furthermore - The market cap of Netflix (an example of a successful company in a similar market space at GZFX) is about 1.6 B with some 65 million fully diluted shares. Why then would GZFX need/want 1-2 Billion shares (after a hypothetical RS)?
Again - not disputing, just inquiring! - Thanks.
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