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pocketfullofpennies

06/20/09 11:53 AM

#8343 RE: kzivann #8280

Here's the thing about the R/S:

Regardless of the increase in PPS, your stock valuation is now WAY less.

If you own:

50mil shares out of 5bil A/S, you own 1/100th of IMGW

for you to keep the same valuation the A/S needs to be reduced by the same (10,000,000).

50mil/500= 100,000 out of 5bil/500=10,000,000, =1/100th

IMGW is actually INCREASING A/S

Now instead of owning 1/100th of IMGW you would own:

100,000 shares out of 500mil A/S = 1/5000th owner

Please stop saying that they are reducing A/S, when actually they are Increasing Post-Split A/S by 490 million shares