Let me be the first to show the errors in your statements:
Forward splits do not effect liquidity when almost 100 percent of the shares available are tightly held. The percentage of ownership remains the same, liquidity does not change.
Secondly paying a dividend, a foolish thing to do, does not help liquidity either, paying you 1 cent a share giving the average investor about 5 dollars a quarter is pointless when that money should be used to further the business. Increase balance sheet, and maybe allow them to get capital needed to increase R&D and Marketing budget which is greatly more important to a company than paying the greedy an unwise dividend.
Paying a stock dividend does only one thing, massive dilution, and that would have to be paid to all shareholders of record, including mr lenfest. Not a smart idea as each additional share reduces the value of the entire float.
Thirdly, Market cap is only the share price times the amount of outstanding shares, so if no rise in PPS there will be no rise in market cap. And until they are once again public, have a PE Ratio etc, Liquidity will remain minimal.
There is only one reason for the 200 for 1 share split, much easier to sell the company, Mr Lenfest is 82, the Lenfest group has a mandate to liquidate all holdings within 10 years of the lenfests death now concentrating on the youth of Philadelphia. See press release of March 2013. Some say he won't sell, I argue that in the near future it will be just that, so the proceeds can make a positive affect on the youth. Expect TEVE and ETCC to change hands. Both stocks are in the same boat. Would like your opinion as to why they did the split?
So now what happens if TEVE does not start paying dividends? Is that what you are relying on now? What about the shorts?? Do they not figure into your market cap. Remaining a Dark Pink Sheet stock is also very foolish. But Good luck anyway.
Have a great Wednesday.
AI
