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BirdsOfFire

04/15/22 10:51 AM

#114955 RE: justhefax #114953

You are point on in this conversation. RS is OK under the right conditions. If the company is making profit and won't have to keep digging into the investment of the investors--IMO--a RS is effective. However, if the company starts making 30 million a year, there is no need to do a RS--a buyback is better for the investors and the company. IMO

Thank you.
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Paco Sanchez

04/15/22 10:58 AM

#114956 RE: justhefax #114953

You are correct on the third reason. In fact, one compny that I follow was trying to do just that last year and I was in favor of it. Many investors on this forum were against it because they thought that their shares would be diluted. But if they do not have money, your shares mean nothing. Doing the RS would guarantee that company would have had cash to fund operations for several years. But now, the company, after changing their minds, are facing just a few more quarters before they run out of cash.

People need to get over this dilution thing because it renders them unable to think rationally. They would rather lose everything than make less than they originally thought.
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Bubba One

04/16/22 2:49 PM

#114973 RE: justhefax #114953

No a rs is disloyalty to original long time shareholders and investors and a legal way to steal from them. Go get a loan and roll the dice if the product can’t stand on its own don’t waist our time. It’s not just business a reverse split is a ruthless theft from loyal shareholders you know the ones who bought held and that got this so-called company where it is now.