Big Bro, i was just about to put the finishing touches on this post, and now that you've responded, i think this is the right reply to you.
while there's usually a sense of dread whenever dilution is mentioned in a stock, in the case of the OTC IPO's there are several positive factors that make it nearer to a godsend than a death sentence in dealing with the issue of illiquidity.
for one thing, where many reverse merger plays are prone to signing in to the Reverse Split Motel when trying to slim down, the OTC IPO has already been pared in anticipation of the merger, and is thusly more suited to a forward split than anything else. just as importantly, the issuance, or new found availability of the stock is more times than not a bottom buying opportunity. the need for the initial shares to get into the market generally keeps the price from being so high as to not induce buying; and, then, when the shares begin to leak in, the thinness of the float pushes the value up, not down.
of course, these stocks aren't accumulators plays, with an all you can eat repast. their general illiquidity keeps investors from buying them up, but a quiet 500 to 1k can net a reasonable return in a short period of time. BRTI recently went from .60 to 3.00 in the blink of an eye. and UBIA, whose 8k was noted by you on January 4th, was at .55 the first week of February. one month later it hit $42. mind you, that is probably the exception to any rule, but IRNC, given below 1.30 -- what was i thinking when i sold it to buy an overliquid stock? -- recently hit 9.90. can you spell profit? or is that word spelled better as prophet.
whatever the case, count me in on it.
best of trading to you and ALL
rich
