Replies to post #216492 on Kraig Biocraft Laboratories Inc (KBLB)

[Deannie]

Patrik, I understand perfectly what you’re trying to say. It’s just silly to believe that having 1000 shares of a $.10 stock is any better than having two shares of a $50 stock. It matters not. It’s pure psychology and nothing more. That I have 50 shares of Tesla where i had 10 shares before the split doesn’t make me any better off than if the split hadn’t taken place. Your assertion is that, wow, having more shares means it’ll go up more! Not the case. I can’t put it any more simply than that.

[WebSlinger]

<< The upside to the Nasdaq is intitutional investors arent allowed to dabble in penny stocks hence greater visibility on the NAsdaq. >>

While the sentiment of the statement is mostly true, some institutional investors (such as hedge funds) can invest in a penny stock. It just matters how much risk the investors are willing to take.

But on the flip side, shorting a penny stock is next to impossible (except for a very small minority). But on the NASDAQ, anyone can short.

In addition, liquidity will drop significantly. Right now, there are just over a million shares traded per day (on average). That would drop to about 25,000 shares traded per day (assuming a 40:1 reverse split). That is VERY low and most investors wouldn't want to touch that sort of stock (except for shorting).

So there are some pros, but there are also many cons.

[rayovac812]

Your math is right.

But.....

From .20 a move of 1 penny = a 5% increase

From $8 a move of .40 = a 5% increase

It is no easier to move 5% on the OTC, than the NASDAQ.

There is no difference. Moving to the NASDAQ simply enlarges the pool of potential investors.