BBB
I still haven't seen any edgar online filings for Grifco, so there is no absolutely no confirmation of 37MM, 40MM 20MM shares outstanding.
This spinoff will be just like any other spinoff, dividend, or stock split. When we go ex-div, the share price of Grifco will drop in accordance to the value of the baseline of CTT's addition to the base value of Grifco. If the CTT division is bringing in 80% of the revenue and 80% of the profits the pricing will be an 80/20 split between the two stocks.
Those of you who think that you're just going to magically create wealth out of nothing, CTT shares start trading at .75, and you get 20,000 of those from your 10,000 GFCI, and GFCI still trades at .30 or whatever need to bone up on your corporate finance slightly. You're going to be dividing your wealth up into two accounts, both of which add up to your previous account before the split/div whatever.
An interesting thought is that if GFCI stock IS highly shorted (which I have my doubts) and shorts indeed have to pay the "dividend" to the true shareholder, or the person thay sold the shares to, then GFCI short will owe the newly created (fake) IPHG long about two shares for each GFCI share. This in essence is creating a new stock with it's very own naked short faction/contingency.[I'm almost sure that management of GFCI is looking forward to people who are short GFCI to have to "buy in" to GFCI (cover) so as to avoid being short CTT, but they will have to have a great story to get CTT moving. I doubt the SEC is going to force a buyin on a pink when they won't even force the buyin to fill the COB purchase in OSTK]
Also ironically, I am not sure how many people are buying stock in GFCI for their jarring tools, or fishing tools. Many, if not most are in the stock for the (alleged) amazing potential of the jet motor with it's huge margins and huge revenues and performance. So once GFCI stock is reduced ex-div, there is likely to be more selling pressure (after all there's no financials and no news on the grifco side- no confirmation of revenues 'yet') in GFCI so any "shorts" will be able to cover lower than the new value of their short position.
So we've got a new stock with it's own built in short position, we've got one share GFCI trading at .15 and two shares of IPHG at .075ea ** and GFCI looks to be taking a dive from there. Let's hope IPHG (paintball international- real cute) starts trading up real soon, or we're going to have some real confused shareholders. Myself included.
The question remains, WHY????
**assuming the market prices a 50/50 split of value between the GFCI portion of your assets and IPHG portion.
