i have to ask too about the 'reset'
this would be the first company in america to get the SEC to 'reset' the price without a reverse split, a forward split, a buyout... wait a second... even in all of those cases the SEC doesn't 'reset' a price, the market does. In other words, the supply and demand for the stock sets the price. Not the company, not the SEC, not the NASD, not the market makers, just those willing to buy or sell at prices based on their beliefs about the prospects of the company.
so if i have a public company with 1,000,000 shares outstanding, and trading at 2 dollars, and my board declares a 1 for 5 reverse split, since only the color of the certificates have changed (less shares out, now just 200,000 shares), the market forces will reopen that stock at 10 dollars a share. Just like when a stock pays a dividend, on X-date it typically opens lower in the amount of that dividend.
So I too am confused about how this company expects to effect a 'price reset'. I'm not saying they won't. I'm not saying they can't, heck they have made history already. Never heard of anyone else adding 5 billion dollars in bonds and saying they can add them to 'book value' of the underlying company.
unless this company can come out with some fantastic news to cause people to believe even more in thier future prospects, I just don't see how they can 'declare' a 'price reset'.
just my questions and opinions... not bashing or pumping.
AI
