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Re: N_B post# 30978

Thursday, 04/21/2011 4:44:01 PM

Thursday, April 21, 2011 4:44:01 PM

Post# of 54416
N B,
I have to chime in on your post... "Management should keep doing what they're doing and the stock price will take care of itself. Artificially inflating it will not work. They will just end up having to RS again when they are finally ready for the Nasdaq. Does not make sense to RS twice."

With all due respect, there is nothing artificial in the RS. The closing price today of .079 has the same valuation as a post RS price of $7.90. The PE doesn't change, since the PE denominator (earnings) gets adjusted based on the number of O/S shares.

You can be against the RS for any number of reasons, but a post RS "artificially inflated price" isn't one of them.

Price is dependent on supply and demand, nothing more. In dollar value, the same amount of stock will be trading pre-split and post-split.

If you want to make an argument that the VTSI stock price is going to drop post-split, it has to be based on those factors that effect supply and demand, which in the long run usually always ends up being earnings. There may be some sellers post-split driven by emotional factors versus fundamentals, because they don't like the sound of 100 shares versus 10000 or some other irrational motivation. But, those are the kind of people we want to see selling post-split, because they create buy opportunities for investors that see past the emotional baggage. GLTY.
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