SOHM Inc (SHMN)

[SLC-JD]

Had to jump in with today's action. Very encouraging!

It is not necessary a bad thing.

I totally agree. But it is not necessarily a good thing either.

That said,I would posit that R/S are sometimes important not just for capital growth (creating room in authorized shares and/or to establish a reasonable price for future offerings), but may also be critical for for generating investor interest by driving share price into a more "real" range.

Many have pointed out that SHMN has minimal dilution; this is 100% accurate on a prospective basis. But the fact is that the Company has a lot of shares in circulation, which creates a logical cap on PPS - SHMN is unlikely to become a a company with a multi-billion dollar valuation, so we're unlikely to see even a speculative run up over a dollar. An R/S accompanied by a reduction in authorized could serve to raise the PPS into a realm that is interesting to folks who aren't primarily pink sheet investors.

At the end of the day, if SHMN is content to be a penny stock, this is probably a non-issue. I don't know where the logical cap exists, but it's definitely sub-dollar. If the company wishes to advance beyond that level, it either needs to progress WAY beyond its current levels, or create pricing demand through scarcity (i.e. - a reverse split).

As noted abolve, this strategy is contingent upon a concurrent (and equivalent) reduction in authorized. If the organization reduces OS without reducing Auth, it simply opens the door to future dilution and potentially reduces investor confidence.

I don't advocate this approach, but simply acknowledge that there is potential value in certain cases - it is difficult to say if SHMN and/or its shareholders might (or might want to) benefit from it.