Replies to post #86250 on Alumifuel Power Corp. (AFPW)

[twostocks]

Why a company generally does a R/S is.because...

it wants to bring its shares to a market required price. The problem is the reason the companies shares dropped below that price is usually but not always because the company has a problem of some sort.


Let's say you buy 1 million shares of AFPW at .0001, you spend $100. Let's say the bid on AFPW goes to .0001. Now you are even money.

Now AFPW has a R/S that leaves you with only 1000 shares but at the higher price. I can almost guarantee that if the fundamentals of AFPW have not changed your 1000 shares will go right back down to .0001.

Instead of the 1 million shares worth .0001 you now have 1000 shares worth .0001. A company can split its shares over and over again.

This is the reason to look for shells that have about 100 million of less shares. Less likely to R/S.

[brando5]

Why do you say they cant do a reverse split? Not current with financials?