A/S Increase EXPLAINED
REVO wants to increase A/S for a reason they explicitly stated. Acquisitions.
By increasing the A/S they free up a TON of shares (Not adding them to the float) and this means they can buy out a company by giving them stock, instead of actual money. Some may argue "we have money from the patent deal", however, let me remind you that if you can spend 60 mil (rough estimate) on acquisitions, then give away a few millions shares and equate to the same amount... you are just using smart business tactics.
They are NOT decreasing PPS.
They give away say 300 million shares which have a market value of 30 mil. They buy a company worth 30 mil..... That means that company net worth has not changed at all. If that company increases revenues and gets restructured (purpose of acquisitions) then we all benefit.
So, many of you may be against the idea of an A/S increase, but I am all for it. They are aiming for exponential growth. That is why it would be considered a HIGH GROWTH STOCK (deserving a 20 multiple).
So an increase in A/S used for acquisitions WOULD NOT decrease our PPS, instead it would add value to shareholders. The business strategy being implemented since september is a winning one. I am excited to be in this stock at this point.
