CLST Holdings Inc (CLHI)

[Renegades17]

Lost the battle, salvage the war?




I think the RS battle is probably lost. Best case, the ratio is reduced to preserve some liquidity (if they are smart, not making that assumption at this point). I think positive announcements will probably be saved for after the RS to boost the stock price and mollify CLHI shareholders. The stock will be tougher to trade, but easier to manipulate on the upside with news. If you noticed, based on the meeting notes, they tried to stress a couple of things:

1. No post RS dilution until Q4. They were seemingly trying to address one of the chief concerns typical of an RS- post split dilution crushes the stock price further.

2. Shares issued to TDS and its various stakeholders won't be freely traded for several months (up to 18 months in some cases I believe). That will keep the float very tight (unnecessarily tight IMO, but there are some positives that come from that).

As far as the projections go, they won't help the stock until management demonstrates evidence that they are achievable. This can be done in one of several ways: quarterly revenues, acquisitions, new contracts, partnerships etc.

Hope this helps frame the forward outlook for the stock a little bit for those that are disgruntled (as I am).