The market cap of this company is a little over $1.25 million that's the price of only an average house in London. In other words - it's peanuts today.
If he merely reverse split again, it would still only be capped the same.
If he reversed split another 2000:1 it would price a share at
8 cents (if my maths are correct). Anyone with 2000 shares now would have only 1 share worth 8cents.
If anyone could short these shares, and I do not know a broker who would allow you to do this on a pink sheet (POS), who would buy them?
In fact, because of the economic climate which exists, and is deteriorating daily, it will be difficult getting any such company off the ground. So, anything Lumb did would have to
be (or appear) very professional and convincing.
In other words, the company would have to attract many new speculators prepared to buy all that the short sellers dumped.
I do not think the current shareholders (all waiting to get out) would pick them up.
My feelings, at present, are that Lumb will pick his time, and
plan things so that it looks as professional, and potentially
as future profitable as possible with, at least in the beginning, a higher share price above anythng brought about by
a R/S.
He may use the Mining assets he is supposed to have on the books as a carrot ('shareout') to bring in new speculators if gold should continue its rise and starts attracting a lot of media attention to the metal. But this would be in addition to how he markets the new company (Financial Services)
Just some thoughts to chew over. Anyone else with ideas that would possibly work?
AI
