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Re: Uncle Gee Gee post# 19140

Monday, 09/07/2020 12:18:53 PM

Monday, September 07, 2020 12:18:53 PM

Post# of 44690
Because in 99% cases in OTC market the reverse split is followed by issuing more shares, which is called dilution. Basically you own a certain percentage of a company and after the RS is stays the same , but if a company starts printing and selling more new shares your percentage goes down. In some case your shares gets diluted to zero. Imagine your 400 shares become 100 , but then the company issues 2 billion more shares , so you own 20% of what you used to own interms of the percentage of the company. I don't believe this is going to be the case here. They have cash and even if RS they will not print out new shares.
Hundreds of cases in OTCBB where the stock is at .001, they do a 1000:1 rs, stock goes to 1$, they print 100 million more shares , stock slides back to .001 in a year, they do another Rs and so on. All about finding new suckers and a new 'winning ' story. Again this stock is different in my mind.