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Re: DAD2 post# 1783

Wednesday, 02/16/2011 7:17:39 PM

Wednesday, February 16, 2011 7:17:39 PM

Post# of 28290
No, the value of your TOTAL position remains the same. The pps actually decreases but because you will now have 3 times as many shares, the value of your TOTAL position remains exactly the same. Example based on current share structure at .20 pps and a position of 10,000 shares: .20 pps x 10,000 = $2,000 Post split: 10,000 x 3 = 30,000 shares; .20/3 = .0666666667 pps x 30,000 = $2,000 e.g., EXACTLY the same total value for your position even though share price has been reduced by 3 for 1. Make sense? After that, it's all up to the market to decide where it goes from there. From my experience with F/S (forward splits), the pps almost always jumps up quite a bit post split and then sizeable sell offs take place. Not always but more often than not from my observations. I hope this clears everything up for both you and anyone else who still may be confused about this.

Everything I post is only my opinion. Please do your own DD and do not make any investment and/or trading decisions based on anything I say as it is all just my opinion.