FNIX-Reverse Split. *Pros/Cons
Per the allege pending R/S for
1-for-1,000
1-for-2,500,
1-for-5,000, or 1-for-7,500
(which also may not happen)
Although a Reverse Split (R/S) can have a very profitable result for a stock, I’ll first note the negative results.
The most commonly known effects, according to trend.
Whereas, (for the newbies), immediately following an R/S, the market value (Your initial purchase price or Current Value) of your shares are maintained by the adjusted offset of the number of resulting shares owned, times the new Price Per Share (PPS) value.
Note the following.
BRFORE the R/S
Market_Value_I__PPS____I_SHARES OWNED__
__$100______|__.0001___|__1000000______
AFTER the R/S (Using choice ‘1 for 1,000’)
__$100______|__.1______|__1000_________
Notice from the above, the Market Value of your position immediately following the R/S stays the same.
The shares owned times the PPS value was adjusted accordingly.
The Market value = the total dollars you’ve used to by the shares, or Immediate Value of your shares, just prior to the R/S.
The PPS= is the value of each share.
The Shared Owned = Quantity of shares you’ve purchased, or was adjusted.
The applicable equation would be;
Market Value = (PPS x SHARED OWNED)
From this you can also see that if the PPS value of ‘.1’ (after the R/S) ever falls back to .0001, then the following would be your market value;
Market_Value_I__PPS____I_SHARES OWNED__
__$0.1______|__.0001___|__1000__________
10 cents would be the Market Value of your initial $100 investment.
Had the R/S been ‘1 for 7,500’, the following would have been true;
BRFORE the R/S
Market_Value_I__PPS____I_SHARES OWNED__
__$100______|__.0001___|__1000000______
AFTER the R/S (Using choice ‘1 for 7,500’)
__$100______|__1.33____|__133_________ (133.3333 truncated)
From this you can also see that if the PPS value of ‘$1.33’ (after the R/S) ever falls back to .0001, then the following would be your market value;
Market_Value_I__PPS____I_SHARES OWNED__
__$ 0.0133___|__.0001___|__133___________
1.3 cents would be the Market Value of your initial $100 investment.
This is where and how scam Pinks makes their profits.
Who cares whether “OTHER” investors decide invest or not as the market echoes the Negative Percentages of the stock.
The scammers got the money they wanted (from you) and could care less of those they’ve knowingly injured in the process as they selfishly line their own pockets.
Not so much to ridicule the buyer for buying, as much against the seller for selling ‘known but unannounced‘ fraud , in and of that act itself.
However, on a more POSITIVE note, a Reverse Split can be beneficial for investors, according to the following;
BRFORE the R/S
Market_Value_I__PPS____I_SHARES OWNED__
__$100______|__.0001___|__1000000______
AFTER the R/S (Using choice ‘1 for 1,000’)
__$100______|__.1______|__1000_________
On the market side, the PPS change from .0001 to .1 would have echoed a hell of a green percentage gain. ’10,0000%’
That in and of its self, would then turn a ‘360’ on many heads and could spark a buying spree which could/would further send the PPS even higher, which could/would then spark more buying and the initial shareholders may then be lining their own pockets from their gains.
Had the R/S been ‘1 for 7,500', resulting in a PPS change from .0001 to $1.33, the market would have seen a Green blitzkrieg of a whopping ‘1,330,000%’ Gain!
DAYUM!!! -Never mind the 360 degrees head turn, how about 1080 degrees –LOL!
Now here’s the clincher and an “exception” to the rules as it related to the reputations of the R/S.
Curiosity drawn to a stock having such a high percentage gain of this magnitude will cause quite a stir in curiosity. Enough to drive many to do their own ‘DD’ on that stock
However, in this case, the ‘DD’ on FNIX will allow one to discover (or rediscover) it as being a company that specializes in the development and marketing of a means that greatly improves the user friendliness of hand-held and gaming devices in as much as to allow users to “TALK” to them. Therefore rendering them “HANDS FREE”.
Along the way, Further ‘DD’ will reveal that ‘APPLE’, the makers of the iPOD, a Market Block Buster device, has also INDORSED FNIX WITH IMMEDIATE EFFECTS!!
With FNIX endorsed by and riding on the Powerhouse reputation of “APPLE”, the PPS may likely go supernova.
Forward looking into the future?, who knows, APPLE may buy the company all together.
Ya never know.
Summary;
ALL trading Companies, be they credible or not, stand to gain by and R/S. Be it at the expense of unsuspecting investors they’ve bilked, or a legitimate company, such as FNIX, who in their case may do it for honest reorganizational reasons.
Such reasoning may also include being qualified to be listed on the NASDAQ.
Initial Eligibility Criteria to be listed on the NASDAQ*
To be eligible for initial inclusion in the Index, a security must be listed on the Nasdaq Stock Market and meet the following criteria:
· the security’s U.S. listing must be exclusively on the Nasdaq National Market (unless the security was dually listed on another U.S. market prior to January 1, 2004 and has continuously maintained such listing);
· the security must be of a non-financial company;
· the security may not be issued by an issuer currently in bankruptcy proceedings;
· the security must have average daily trading volume of at least 200,000 shares;
· if the issuer of the security is organized under the laws of a jurisdiction outside the U.S., then such security must have listed options on a recognized options market in the U.S. or be eligible for listed-options trading on a recognized options market in the U.S.;
· only one class of security per issuer is allowed;
· the issuer of the security may not have entered into a definitive agreement or other arrangement which would likely result in the security no longer being Index eligible;
· the issuer of the security may not have annual financial statements with an audit opinion that is currently withdrawn;
· the issuer of the security must have "seasoned" on NASDAQ or another recognized market (generally, a company is considered to be seasoned if it has been listed on a market for at least two years; in the case of spin-offs, the operating history of the spin-off will be considered); and
· if the security would otherwise qualify to be in the top 25% of the securities included in the Index by market capitalization for the six prior consecutive month-ends, then a one-year "seasoning" criterion would apply.
Interestingly enough, (however trivial), FNIX is ranked among the highest trading symbols noted on investorshub’s home page tracker.
I hope this answers many of the questions regarding the R/S,,, Pros/Cons
AI
