InvestorsHub Logo
Followers 18
Posts 810
Boards Moderated 1
Alias Born 10/29/2010

Re: IARN2010 post# 19156

Wednesday, 11/24/2010 7:31:56 AM

Wednesday, November 24, 2010 7:31:56 AM

Post# of 38585
While there are many far more qualified to make address this, I'll throw out my two sense in terms of my understanding...

Because a R/S does not change any fundamentals, typically the price continues to slide (normally R/S are done to avoid getting delisted, which would only be in the case of a falling PPS).

Sooo, because the vast majority of the time that a R/S occurs, the price continues to fall, and R/S gets a negative stigma, which leads to fear and selling, etc., etc., etc.

However (in my silly little mind), if R/S does not change the fundamentals (which it doesn't, agreed upon across the board), then, for those that invested in LFBG based on fundamentals of the company, i.e., real product, good product, good sales, increasing sales, holiday buying period, market niche, distribution contract, walmart contract, commercials, etc., etc., etc., etc., etc., etc., etc., etc. ... then the R/S won't necessarily result in a drop in price. The day it occurs, you'll have 40% less shares at the same value that you had the night before. It would seem to me that as this won't take place for another 6+ weeks, after a potentially huge quarter through the Holidays, that there would be no rational reason for the PPS to suddenly take a nose dive if it's on a steady up-trend.

Just my two cents.

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.