Dear all,
Before embarking upon making my querie, I should first like to say that I have been following this board regularly since approximately Feb 2007 and have enjoyed both the financial input and technical understanding that I gain from all your posts, special thanks to Dew whos diligence and input I understand we all value.
Based upon my own understanding of the science involved and what I believe to be tremendous oppotunity for this company to make it big, and ofcourse the PPS rising accordingly, (especially at the extent from which it is currently undervalued), I have since invested what would seem tuppence compared to others on this board, with an mean cost basis of $1.08
My querie is based on finance operations of which my knowledge and understanding falls well short. I hope not to bring up inconsequential matters of high-school mathematics :)
My querie is based on the effect to PPS potential growth regarding the potential future Reverse Split.
From what I understand, if one were to own 100,000 shares at $1 and see a Reverse Split of 10:1, then the number of owned shares post-split would be 10,000 shares at $10, thus not immediately affecting market valuation of the shares.
Prior to the split one would need a PPS of $10 to reach the $1 million valuation mark. However, post reverse split one would need the PPS to reach $100 before attaining the same $1 million mark.
A) In terms of reaching such a mark ($1 million) my understanding is, it would seem a lot less likely for the company to reach the $100 PPS valuation post-split than $50 pre-split. Do you agree?
B) Since the number of common shares also proportionately decreases by a factor of 10 does this mean that any single buy would have 10 times the effect than the effect the same buy would have before the split?
C) If B) is correct, Then as crou mentions this split could be good for GTCB as, with news of a partner the stock could rocket up, as these 'new' buys will have 10 times their effect as before the split. However, though this 'benefit' maybe the case, if share prices were to rocket up to say, (for the sake of argument), $50 a share then the higher price might discourage future investors and keep the price at ~$50 mark, no-where near reaching the $100 needed to make the same earnings as one may have been hoping for from an attainable $50 PPS before the split.
Would this limiting growth effect be the case in practice?
If the abilty to reach the target mark would be impeded by this reverse split, then I might seek to attempt to short, (though with my relative inexperience a scary idea), a proportion to avoid losses.
D) However, if such worries are incosequencial and given the potential for GTCB, reaching $100 post-split is just as feasible as the $50 pre-split. I shall sleep soundly.
With the implications of the R/S, and with all else being equal e.g. partnerships and development, is this ability to reach $100 PPS post-split just aslikely as the $50 PPS target pre-split?
Please note, my original intention is to be long in this stock.
I know this probably sounds a little confusing, heck I've never even come across this before but I hope my questions are clear enough. Such concerns may perhaps even sound trivial but clarification on this matter would be greatly appreciated.
Regarding the overall potential for GTCB, my senses are positively tingling. But on this R/S matter, for good or bad, they're all over the shop. As rveach said decisions, decisions, decisions..
Thanks again for all your input and for any help,
Spidey
AI
Market Data 
Markets 
