InvestorsHub Logo
icon url

dipbuy

01/06/24 1:07 PM

#63182 RE: dipbuy #63181

Another perspective of how OS affects SP.

INTV's market cap at the peak of 2017 and 2021 was 45MM and 115MM respectively.
INTV's 2017 reverse split was a smart move because 1. It was well-timed before the 20k run-up 2. Shares were not diluted.
INTV's 2023 reverse split is a terrible move because it is not well-timed and shares are being diluted.

For comparison, below are numbers of INTV that were to reach its previous peak market cap with OS as an anchor.
04/21/2023 with OS 2,860,596: $15.73 and $40.2
08/30/2023 with OS 4,000,000: $11.25 and $28.75
01/05/2024 with OS 5,064,492: $8.88 and $22.7

The effect of split and dilution so far is that the target of $40.2 was reduced to $22.7.
AND DILUTION IS NOT STOPPING. Assuming 10MM OS at the rate INTV is expanding "restricted shares", these numbers will be $4.5 and $11.5.

Of course, there are other variables as well. Dilution can have a positive effect if a company expands the business and increases revenue -- this is what most miners are doing.

CEO thinks that NASDAQ equals easy access to money and hence more revenue. Well, you also need successful execution and management of OPEX.