Tuesday, October 12, 2010 6:55:42 PM
There is no positive spin for shareholders than own a bunch of shares of this company. A 1:100,000 R/S is unbelievably cruel to the shareholders. Certainly not saying that the shareholders aren't getting screwed here, Rainer, because they are.
However, those with a smaller stake here could still salvage a few bucks BECAUSE it's not a straight R/S. It's a R/S Round-up play. Anyone that owned one share today will own as much as a fellow that owned 100,000 shares after the R/S and share round-up occurs. Actually, anyone that owns 1 share of this today will end up with the same 100 shares as a person that owned 10,000,000 shares today as they'll each end up with 100 shares. A guy with 10M shares gets smoked, no doubt about it. A guy that bought 1000 shares today @.0001 has $10.10 in it if his trade cost him $10.00. He has $10.10 invested and will end up with 100 shares. Post R/S the share price could be $10.00, which it won't be of course. But let's say that by the time he gets the 100 round-up shares in his account he can sell it for $4.00 a share. That's $400.00 with $20.10 (2 trades and cost of 1000 shares) invested for a profit of $379.90 on a dinky little trade. If he gets $5-6 a share, he does even better. If he gets $1 a share, it's still a 4 bagger. THAT is the only positive spin on this thing is for those that didn't hold a lot of shares or those that bought in for the round-up play. First hogs to the selling trough will probably come out the best, although these tend to recover sometimes a little before running to the bottom so you never know there. Round-up shares won't be available for several days usually, and I've had it take a couple weeks. One thing you can be sure of is that it's not gonna hit everybody's account at the same time become some brokers will get the shares credited to the accounts before others will. You'll know a broker credited accounts when you start seeing 100 share trades hitting the ticker. What you won't know is whether or not that's folks that just bought for the round-up selling, or other screwed shareholders dumping their 100 shares then.
Again, I have no dog in this hunt. Don't own any of it and never have owned any of it, but I wish I would have bought me 1 share of it today for the round-up play, and that's all I would have had to own to get me 100 shares post split.
Good luck!
JJ
However, those with a smaller stake here could still salvage a few bucks BECAUSE it's not a straight R/S. It's a R/S Round-up play. Anyone that owned one share today will own as much as a fellow that owned 100,000 shares after the R/S and share round-up occurs. Actually, anyone that owns 1 share of this today will end up with the same 100 shares as a person that owned 10,000,000 shares today as they'll each end up with 100 shares. A guy with 10M shares gets smoked, no doubt about it. A guy that bought 1000 shares today @.0001 has $10.10 in it if his trade cost him $10.00. He has $10.10 invested and will end up with 100 shares. Post R/S the share price could be $10.00, which it won't be of course. But let's say that by the time he gets the 100 round-up shares in his account he can sell it for $4.00 a share. That's $400.00 with $20.10 (2 trades and cost of 1000 shares) invested for a profit of $379.90 on a dinky little trade. If he gets $5-6 a share, he does even better. If he gets $1 a share, it's still a 4 bagger. THAT is the only positive spin on this thing is for those that didn't hold a lot of shares or those that bought in for the round-up play. First hogs to the selling trough will probably come out the best, although these tend to recover sometimes a little before running to the bottom so you never know there. Round-up shares won't be available for several days usually, and I've had it take a couple weeks. One thing you can be sure of is that it's not gonna hit everybody's account at the same time become some brokers will get the shares credited to the accounts before others will. You'll know a broker credited accounts when you start seeing 100 share trades hitting the ticker. What you won't know is whether or not that's folks that just bought for the round-up selling, or other screwed shareholders dumping their 100 shares then.
Again, I have no dog in this hunt. Don't own any of it and never have owned any of it, but I wish I would have bought me 1 share of it today for the round-up play, and that's all I would have had to own to get me 100 shares post split.
Good luck!
JJ

