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Re: ForOlie post# 67771

Thursday, 06/21/2012 12:38:40 PM

Thursday, June 21, 2012 12:38:40 PM

Post# of 232511
I'm frustrated about the SP too, but a RS won't help. Evidence is overwhelming. SP goes down with a RS. Really good companies have used RS effectively. But the thing everyone has to remember is that even though KMAG is not your typical stinky pinky, it is is in the Pink Sheets.

And that association will almost surely be negative when combined with a RS. Might it recover down the road? Perhaps. But look that this board. Most people are positive or negative on Jeff Reid and KMAG at the slightest change of the winds.

You don't really think that a RS (even by hallowed KMAG) is going to produce anything but mass negativity toward the stock.

Bashers and shorts are the only ones who will love a RS. And longs? Sure, after a long time of suffering.

For the record is clear. A RS WILL drive the price lower than current levels (accounting for change in SS). That means those that are already down say 50% or more, will very easily be down 75% or even far more. I've seen instances of 90% or more -- effectively wiping out the entire investment. I don't think that would happen with KMAG because it's making money and looks to make more.

But, ESPECIALLY, as JR has said no foreseeable RS, and then goes and issues a RS? KMAG will be poison for a good long time.

IMO.


"A man's character is his fate." Heraclitus (c.540-c.480BC)