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Re: king oil post# 1870

Friday, 01/05/2007 1:03:45 PM

Friday, January 05, 2007 1:03:45 PM

Post# of 103302
The forward split created liquidity to soften the later selling of shares for financing. Say the stock is trading at .05 and never performed the f/s. Then they need money and finance 1MM shares. Well because the float is so low and there is not investor support, the pps would drop like a rock when those shares entered the market. Now let's take our situation where they performed the 10:1 f/s. So now all of these new investors get these shares and pps is lowered and there are investors to support it. Selling 10MM shares at this level is more easily consumed by the investors then before.

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