Well, I have yet to see a RS, especially one this massive, that has ever benefited current shareholders.
Could this be different? Could this be the one in a million where the SP will rise after the RS? Maybe. It would be a miracle, really. But then again, it would depend on what exactly is getting rolled into the shell. It's definitely just a subsidiary coming in here due to the name of the company being different from the parent company name. So, guess it will be known at some point in time.
But, even just knowing a RS is coming is NEVER a good thing. And this was proven by the reaction to the news yesterday.
wow guess it all depends on the story weather the sp sinks from $3.50 or skyrockets
Total BS, if you want the real answer ask Sterling there have been some RS that were beneficial to shareholders But they are few and far between. As stated it all depends on what actually comes to us with the new subsiderary
The simple answer. Historically a R/S in the OTC is a disaster for investors. The scenario is it usually takes up to several days for the brokers to square up the account with the new shares thus the common investors will not be able to trade.. But the company will be able to dump at the higher price.