Replies to post #56844 on American Green Group, Inc. (AMNE)

[otterman]

On a given day you will receive 5 shares for each 1 that you currently hold. The SP will then be divided by 5 and will begin trading from there. I dont see any logic in this move, it is usually done by companies with a high SP to make the stock more affordable. The company also states that they will attempt to buy back shares with the money coming in from the sale. Again, makes no sense (at the current SP) to split and then buy back? They will also have to file to have the AS increased as the split will violate the current 75MM AS.

Perhaps someone else can clarify the logic further?

[overtheedge]

All it means is their will be 5 times as many shares in the O/S. The stock will open to reflect this. The thing you want to watch for is earnings. ( and a little hype dont hurt either,lol) If the financials arent there the stock will tank as soon as ( or a few days before) everyone gets their so called "free shares". I am not in this stock, and really dont know anything about it, just seen it on the message board, will do some DD tonight. Good luck to everyone. Its fun to make money and it sucks to lose it, LOL