O/S is the problem, A/S is just a symptom.
When EYSM reduced its A/S by 1.5B, the A/S was at 5B no? And O/S around 2.5B? Just a reminder, SEEK's A/S is 30 BILLION and it has an O/S of 7.5-8 BILLION or more (will know Monday).
Let's say SG reduced SEEK's A/S by a similar percentage, about 30%. Heck let's be generous and just call it a third.
If SG reduced SEEK's A/S by a third, or 10 billion shares, SEEK's A/S would still be at 20 BILLION SHARES, which is pretty much the same level of absurdity as the current 30 billion shares. At some point the numbers just become comical and it doesn't matter if you have 30B billion or eleventy bajillion shares authorized. It's equally ridiculous either way.
If SG reduced SEEK's A/S by HALF, the A/S would still be 15 BILLION SHARES. That is still an utterly absurd number of shares to have authorized.
If SG reduced SEEK's AS by two-thirds, or by 20 BILLION shares, then SEEK's A/S would still be at 10 BILLION SHARES. That would STILL be only a slightly less utterly absurd A/S than 15, 20, or 30 billion.
But honestly, does anyone think SG is going to reduce the A/S by even 10 billion shares? He's going to need all those to reach his debt-reduction goals if he doesn't R/S and, through some sort of collective psychosis, people just keep buying .0001's and .0002's until the A/S is maxed...
The point is, who cares what the A/S is at this point? There are almost (or maybe already) 8 BILLION SHARES issued and outstanding. If SG reduced the A/S to 8 billion this ship still couldn't fly. It is the definition of a diluted pig of an OTC stock. The only foreseeable way out of this hole is either a massive buyback/cancellation of 4-5 billion shares (lolololololol), or a reverse split (yeah, methinks that one).
Actually a plane is a good metaphor here.
Imagine SEEK is like a huge cargo plane that has a maximum flying weight of, let's say, 3-4 billion pounds, just to get off the ground (and much less if it intends to soar). The problem is that SG has loaded the plane up with 8 BILLION pounds of cargo. Not only that, but he built the ship with a cargo bay big enough to hold 30 BILLION pounds of junk.
If SG were to reduce the size of the cargo bay on the SEEK plane so that it could only hold 20 billion pounds of cargo, or 10 billion pounds, or 8B, it wouldn't freaking matter because the cargo already on the plane makes it too heavy to fly. SG has to reduce the cargo load, not the size of the cargo hold.
And IMO he is going to do that my cutting each one of the cargo boxes on board into 100 pieces or so, keep one tiny little piece and throw the rest out the door.
That's a metaphor for a 1:100 reverse split, get it?
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