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Re: pennymakesdollar post# 21722

Tuesday, 06/22/2010 1:02:23 AM

Tuesday, June 22, 2010 1:02:23 AM

Post# of 33233
ATNP will still own GoTVco as a separate entity. You loose nothing, ATNP looses nothing and the new shares in ATNP will start trading and therefor they will gain value.
But what if ATNP sells GoTVco after the split??
Well, if ATNP sold GoTVco for say $2,000,000, that $2 million would go into the coffers of ATNP and the pps would increase as ATNP would make $2 million dollars that 1/4 as well as add $2 million to the years end.
The pps is based on ATNP's value, and if they sold off part of the company then the cash generated would have an immediate and lasting impact on the share price.
There is really no bad scenario in splitting a part of the company off especially if ATNP finds a buyer for it.
And I think that is what the split is aimed at, finding a buyer and increasing the value of the ATNP price per share.
The split is defiantly a good thing.