Why I think we're headed for a reverse split. I don't want to be all doom and gloom. I've got money in here too. But there are many troubling things that can not be ignored.
Before I get started, this is my opinion, and I have no foreknowledge of what's to come with PVEC.
The company has said it's committed to retiring shares, and did so earlier this year, only to turn around and increase the number of authorized shares to 7b. We've seen billions of shares trade hands this week, and trade down. A stock with billions of shares is going to trade low, and their are a lot of hands in the pot pulling different directions(shorts, longs, MM's, day flippers.) But with such volume on a hot stock it should have only gone up this week. The only reason I can see for it to go down and stay down all week, is the MM's know there's more shares trading than the 2b we've been led to believe is out there. They're driving the price down to get the massive influx to sell off. If it had only been 2 or 3 days this week, I might have believed it was an artificial wall. However, after a solid week of trading down, it's REAL! And, the company's attitude of going silent to avoid a fight doesn't instill confidence in me that they have that it takes to get the job done. If they can't quite some nay-sayers during a time when their stock should have gone through the roof, how are they going to negotiate those tough contracts? Which brings me to another point, of where's the influx of cash? The company certainly has some assets. But nothing that can currently deliver millions of dollars of badly needed revenue.
Some have said,"There's companies trading with 50-60b float on pinks". That's true, but do they ever get up an our of the triple 0 range? Not for long, if ever. For a stock to run up to pennies, and stay their, it's got to have a volume relative to it's price. You can't have a company on it's way up being pulled in 3000 directions by various shareholders. For everyone that believes PVEC will run to the pennies, IT PROBABLY WILL! But, it comes at a price.... For PVEC to run to pennies, the number of shares need to be reduced DRAMATICALLY. There's only 2 ways to do that. Buyback, and reverse split. The company would have to land that $250 million contract(which by the way, isn't all that likely since it was supposed to be inked in January and never saw the light of day) and have most of it be profit to buy all the shares, I suspect are in circulation, back.
The other option which most OTC Pinks take is the good ole' reverse split. For those of you who say it doesn't change the value of a stock, you must have never watched a pink split before, and I'll show you the math of what you COULD lose. I'll use a worse case scenario. Let's assume someone bought in 1m shares during the run at .0005, the stock runs down to .0001, and then splits 1:100(which is quite likely for a stock of this price.)
.0005x1,000,000=$500
.0001x1,000,000=$100
1000000/100=10,000
.0001x100=0.01
500/10,000=$0.05
So in the end, you see we need it to go past 5 cents, and hold it's value just to break even. And the way it would run after the split would first likely open at .01. And running from .0001 to .0005, is a lot closer together than .01 and .05. And the reality is, after a r/s it usually drops. Sorry for such a long post, but I wanted to clear up some questions, misconceptions, and where my motives are coming from.
I also want to believe Kerry, Jason, and Peter really are working hard for the benefit of the company, and the shareholders. I'm not bashing them, and I wish them the best. I hope they really have "righted this ship", but so far, it only looks to be sinking fasted due to the weight of all the bag holders that jumped on board this week! BON VOYAGE! Here's to clear sailing, and praying to god I'm wrong!(I'm in this thing at .0006!)
AI
