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Re: oilin07 post# 20177

Sunday, 03/06/2011 9:56:54 PM

Sunday, March 06, 2011 9:56:54 PM

Post# of 49071
In the future Mr. Ottens might have to consider one. As you know a conservative R/S does not destroy investor confidence it enforces it.

Example: Company A forecasts a R/S of say 1:6. One share for every six of yours. The A/S is at 6B shares. The PPS is at .002 and you have 6M shares. The value of your shares is $12000.

The R/S happens and the PPS reevaluates to around .012-.018. This is due to the R/S ratio. The PPS will reevaluate at 1 to 1.5 times the R/S if the shares are really taken out of the market.

You now have 1 million shares valued at $12,000 to $18,000 dollars. With less shares in the float, O/S , and A/S, the company will move higher, faster, and with more investors coming in. This is all in part to a company posting real profits, Real products, and above all a real desire to move forward.

Alot of pinks (in fact 54.1% of them R/S at unrealistic ratio between 1:500 to 1:2000 with some even higher, dilute back to .0001 then R/S again). An R/S can be a death touch or a help to investors.

I do believe that Mr. Ottens is looking out for investors. Last year we all thought an R/S was coming. Mr. ottens stated in an e-mail none was to happen. Let's just get him on record that none will happen this year.


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