Replies to post #7484 on Pilgrim Petroleum Corp. (PGPM)

[masc2279]

Well i do believe this is one of the reasons we have not ran and i do believe some of the buy back is happening as we speak. No one is stupid enough to pay a premium for shares if they can buy it at this price.

Second part yes i believe everyone holding PGPM would jump ship but if the stock rises to 1.00 it is because someone believes the stock is worth that much and the stock would stay at that price.

One reason is because the people jumping ship would do so on the way up to 1.00 if it continues to rise the demand is still there and the stock would continue as priced its not like we wake up one day and it is at 1.00 because yes then it would tank as soon as the order was filled for X amount of shares and return to its current prices. example the other day @.0099 which makes me laugh because some poor dumb person took a hit on that one. That is why we have confirmation pages to make sure the order placed is the order you want. LOL

So simple answer if we get to 1.00 the sales and everyone jumping ship should not effect the PPS because it is demand that should be driving the stock price.

[Dallas66]

An unfortunate, but quite common method to avoid a mass dumpage of shares while people take any profits they can get is to restrict shares in the new company once the merger/share exchange is complete. I say unfortunate because more often than not when a merger/acquisition happens where one entity has a larger value increase, people will sell off quickly to take that profit. This will generally drive down the pps and instills a "take ANY profit" in the majority of retailers and you see a cascading drop in pps.

By restricting the transition shares, that allows the company to stabilize the company/pps and gives them and retailers a cooling off period to assess the true value of the company. It can also be a major detriment to the shareholders who are now locked in due to the restriction. If the company can't maintain that pps value, the shareholders that are locked in will see their value erode and are unable to do anything about it.

How ever one chooses to look at it, one must assume if the pps of the new company, or the value the old retail shareholders now have has increased substancially, there will be an effort to take some profit. This may have a negative effect on the pps, and will depend primarily on how transparent the company is in regards to asset value/ownership.