Friday, April 02, 2010 11:03:40 AM
Someone please correct me if I am wrong on any of this.
Firstly, is dilution taking place? We don't really know because the TA (authority responsible for issuing shares) is gagged. A gagged TA is not good. It allows for an increase in the OS (outstanding share count) without us common shareholders knowing about it. The public data right now says the the OS (and this is the number that really matters) is 740.3 million. Since the AS (authorized share) number is larger than this number than it is possible. But, we don't know for sure.
Secondly, do we want an RS? The short answer is "hell no". 99 percent of the time, the stock will suffer a dramatic drop in share price after a reverse split - especially here in pennyland. We do want the OS to go down. But, the right way to do that is for the company to retire or buy back shares from the open market.
An RS can be a legitimate strategy for a company to move or stay on the "big board". But, for any other reason it is bad bad bad for common stock shareholders.
Give us this day our daily bread... and lead us not into temptation (ie don't be a greedy fool)...
I do not have a premium acct, not sure getting one is worth what Ihub wants. If you PM me, include an email and I will reply.
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