Replies to post #94944 on Cuentas Inc (CUEN)

[Village man]

I think your math is incorrect. .0001 X 500 reverse = .05 cents.

So the 4000 shares might be worth $200 bucks.

[DrContango]

they bought 4000 shares at .0001 which is 40 cents. The pps is suppose to be at 1 dollar post R/S which makes 4000 shares worth 4 grand. I see the pps already dropped to 50 cents but that still makes those 4000 worth 2 grand on paper anyway

With all due respect, David, the mathematics of a reverse split of a penny stock scam is not what you would expect.


With genuine companies, your portfolio value pre and post split remains the same.

For example, if you own 100 shares of XYZ trading at 500, your equity is $50000. After a 10:1 forward split, you will own 1000 shares worth 50 and your equity remains $50000


Now lets say you owned 5,000,000 shares of PLKD pre-split.

Prior to the RS there was no bid; the ask of .0001 was moot; no one was willing to purchase your shares at that price.

So let's be generous and give PLKD a pre-split value of .00005 valuing those 5M shares at $250.



After the 1:500 RS, you now own 10000 shares. And one might assume that the shares should be selling at .00005*500 or 2.5 cents/share leaving your portfolio value at $250.


However, that will NOT be the case because of instant share dilution. When this POS begins trading again for real, I would expect the pps to drop to the subpenny range immediately and into the "trips" within weeks or even today...

share supply>>>demand

Remember, before the toxic notes defaulted, those note holders could convert at >50% discount to market price and post default the cost to PLKD will be even greater.

Personally I would recommend that once a bid is established, all current stakeholders sell their nearly worthless paper at the BID, walk away, and try to learn from this horrible experience.













Doc