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Roofus

09/10/20 11:30 AM

#41317 RE: Winston #41312

R/S in the future would actually be a good thing here

Everyone in OTC land seems to think a R/S is bad.
And that's because over 95% of stocks in OTC land are stinky pinkies.
Therefore, they bring in none (or hardly any) revenue, and as a result a R/S in that scenario is usually a larger R/S (such as 1,000 to 1) and just gives more room afterwards to dilute you to the point of being wiped out.

However, when a company generates lots of revenue, a R/S is often a good thing in this scenario.
At worst, it keeps your current % of equity the same from your investment.
If you owned 1% of the float before R/S, you still own 1% of the float after the R/S.
And you won't get diluted like crazy afterwords, because generally the R/S among strong rev. companies are a smaller R/S ratio, such as 10-to-1 or less.
It's the 1000-to-1 type of RS's that are the killers, not the smaller 10-to-1 ratio R/S, or 5-to-1 R/S.

If common stock goes up to $2.00 per share, and PASO decided to do a 5-to-1 R/S to get value up to $10.00 while uplisting, then that will be a good thing at that time.