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Re: 5cap post# 29923

Tuesday, 03/29/2011 3:06:32 PM

Tuesday, March 29, 2011 3:06:32 PM

Post# of 54416
5cap, VTSI currently averages 108,000 shares traded a day, which post split would be 1080 shares traded a day. However the company you cited CNYD is currently listed and reporting on a major exchange with a higher OS so that makes it less speculative and more attractive to institutional buyers. Moreover the higher OS means there are more shares to actually trade. So to begin with you're comparing apples to walnuts.

Now Ferris stated his motivation was to uplist to an exchange, yet his course of action (no immediate audit, reducing required directors) other than the r/s to elevate the share price (via capital restructuring) doesn't seem to jive with this stated motivation

Consequently the stock post split will still be unaudited, trade on the PINKS, not attract institutional buyers, and thus still be extremely SPECULATIVE, yet the price will be a deterrent to buyers (not sellers) who normally trade on pinks (looking for quick gains), so post split trading prior to meeting all the listing requirements should result in fewer shares being traded, not more. Low trading volumes do not attract buying interest or make a market for the stock. Low volume is not a "buy" signal.

Here's a brief read I just googled that demonstrates the pitfalls of low volume stocks dealing with this issue of liquidity:
http://ezinearticles.com/?Trading-Low-Volume-Stocks&id=1829193

Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y
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