What difference does that make when playing this? If I have $100 of stock before the R/S I still own $100 after. Won't the price be raised accordingly?
A/S 5 billion becoming 500 million is a reduction....your view is the relative % has change is correct....but...the usual R/S has no reduction in the A/S.....There are several ifs here....that is why it is a lotto....if the new company is truely as profitable as the unaudited financials state....if they do not flood the market with shares immediately after the R/S....If I owned a profitable private company, would just give it away...no...I would not....my opinion about what the PPS should be is why I bet my $$$$...what the market determines my be higher or lower....this does not look like a B/S scam to me...but that does not mean that it is not....imho