Replies to post #790 on Hat Trick Beverage (HKBV)

[hellzhub]

Head Markr..
Kudos to you there, not because you agree with me (thus far the only one,the rest seems to want to bite my head off), but because you understand the market principal that makes a stock attractive to an INVESTOR, rather than a Speculator. Anyone in the market long enough realizes what a good investment is, they are beneficially structured so investors can benefit. A company with excessive shares outstanding, will never be deemed as attractive as one with a smaller O/S & growing revenues. One might argue and say, well if management owns 90% of the O/S then the shares are still attractive w/ a high O/S-not the case, as investors will shy away from something where management has all to gain. Many, bash the reverse split, likely seeing it done to groves of pink & otcbb issues, but there is many an instance where reducing shares is a necessity to make the shares more attractive, to foster in change & new growth within & outside a company. I will venture to say that if you look at companies that go public, very few do so with a glut of shares, it is just not sound to do so. You start with a small O/S, where management has a portion, & have the market dictate the price of the small float. HK as a 10m revenue generating company, with 1/3 to 1/5 the shares O/S right now is a phenominal investment, if you look at say Jones Soda, a $39m revenue generating company, with 26M shares O/S(47% Instit Owned)it trades at 6-7x Sales, becuase those shares are not in glut.
My thinking is that to achieve the higher possible exchange, & to just build a better investor based company, HKBV simply has too many shares, 340M is just too much.

my 2c, many will not see it so, but there is truth in there.