Tuesday, February 16, 2010 11:51:43 PM
How often in one's life is a new industry born (so to speak...in this case, the Mobile Barcode Marketplace (MBM)) where the single company that is the primary enabler for the new industry and solely focused 100% in the nascent, burgeoning market is also the only player in the entire industry that is publicly traded, making them THE only game in town for INVESTORS who want to own a solid piece of a market that is poised and on the cusp to experience hyper accelerated growth???
So, next month the vote goes down, yes, yes, yes and then what? The A/S is pegged at 5BB. Big deal, already there and YA needs half that just to cash out all of their Schedule D's if I read correctly (as I mentioned, they plan and stand to make BA BA BA BA BIIIILLLLLLIONS over the next eight years on their investment). The par is set to .001/share. Big deal...have you checked out MSFT's! loL! The R/S is approved. Big deal, approved. Not enacted yet, although I do believe it will happen by the end of the year (end of pilot...they knew this was coming).
Now, given that they state right there in the proxy the reason for the R/S being that they "believe that a reverse stock split of our outstanding Common Stock will have the effect of increasing both the visibility and marketability of our stock to future investors"...
Going back to the first point of being the only publicly available option for investors (MBM/NEOM), don't you think that they want to attract and KEEP those new investors being that all eyes will essentially be on them? It also benefits them in the long run providing for a more stable stock price to drip drip drip those Schedule D's into the float over the NEXT EIGHT YEARS (read, NOT "OVERNIGHT") thereby guaranteeing themselves an ever greater return on their investment as the years go by.
They will only get there by getting on a higher exchange ASAP. Maybe that may be two years out or so. So be it. It will take $4-$5/share to get there plus revenues, etc. but that's where they want to be and they can't get there by continuing their slash/burn tactics post R/S.
I do believe there can and most likely will be a decline in the pps post R/S but unlike many here, I believe it will be very short and very painless for those who hold onto what they got. Very short and very painless.
I think partly (mostly?) the reason as well will be due to them being tied to the hip of their "big brother", Neustar. They don't want and won't allow (IMO) their good name and STELLAR REPUTATION to be soiled by being in close relationship/partnership w/ a fellow publicly traded company that deals it's investors such "penny stock shenanigans". The end of the pilot and execution of the R/S will signal the end of YA's sleazy seemingly pump/dump extortion of shareholder wealth.
To cash out like YA wants to over the next eight years, they'll need hundreds of thousands of investors of all levels and the only way they'll get the necessary liquidity and interest in their investment over that period of time is to make it so that everyone will want to HOLD a seat on this "Gravy Train" and opposed to jumping off a spiraling out of control roller coaster.
JMO,
lns
p.s. - yes, my head is out of the clouds and I do see the light
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