Aero Performance Products Inc (fka AERP)

[2SHEA]

FWIW...
Example #1:
100/1 RS (unrealistic,but plausible}
500,000 shares avg'd @ .025 = $12,500
becomes: 5,000 shares @ $1.00 = $5,000
$12,500 invested
$5,000 return on investment
$7,500 loss
Not good! (BUT..THIS IS WITHOUT RETAINED VALUE)
And that's after it goes to $1.00!
It would have to reach $2.50 to break even...
IMO...W/O retained value,anything over 10/1 is a disaster...
Any other opinions?
Example #2:
100/1 RS (with retained value)
100 x current pps = $1.80 per share x 5,000
$1.80 x 5,000 = $9,000
$12,500 - $9,000 = $3,500 loss
break even @ $2.50
So, considering a RS with retained value(USING THE EXAMPLE),the pps needs to be at least .025 for 100/1 RS...
Essentially, what I'm trying to say is,if you expect to come out with a gain after 100/1 RS, you must be at least break even with the pps...(IF the company multiplies the pps x the split factor...)
Minimmum requirement for AMEX is $1.00 per share sustainable for 1 year. For management to be fair in their 6/1 RS scenario, the pps would have to reach .166...(pps with retained value multiplied by split factor.)
Just my opinionated observation, but wanted to get some input from other LONG TERM investors who may be concerned...THANKS
2SHEA