Sunday, June 17, 2007 1:17:23 PM
How many times does it need to be explained before people start to understand that a split, whether forward or reverse, results in your shares being worth the exact same amount afterwards. Four quarters, or a dollar bill - they are both the same.
Also, as has been pointed out many times, the only reason r/s usually signal something bad about a stock is because many times, the reason a company does a r/s is because their pps has fallen so low that they need to do it just to prop the price back up to satisfy requirements. This is not the case with uWink. They are looking to UPlist and they want to do it sooner rather than later by waiting for all the small fries to buy it up to $6. I see this as a good sign.
The people behind this company aren't idiots, nor are they scammers. They know what they are doing and have plenty of experience to back it up.
And no, there are no longs taking up the rear on this move. The only people taking it up the rear are the flippers who don't want to wait a few months for their money to triple. The longs will see huge rewards. There is no doubt about it.
They've already announced the first franchise agreement. Do you guys think this is the only one they've been working on? You don't think they've got a bunch more nearing completion and soon will be announced as they get finalized too?
Franchises are revenue for the company, at the beginning AND ongoing.
So the company needs a certain amount of equity before listing to the NASDAQ or AMEX. A load of new franchise deals would give them that. A financing deal would provide that. So why would Nolan want to pull a r/s now? Why rush the pps if he doesn't have anything else to satisfy the requirements? A r/s now could only mean one thing.
Will there be dilution? Sure. So what? Name a growing company that never diluted. Dilution or debt. What's the difference? Tomorrow may see a dip, but in the end, I believe those who hold on and have a bit of patience (and iron stomachs maybe) will be rewarded tremendously. No scam. No new fuel being touted here. Just a great idea that's about to take off.
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