Replies to post #197889 on Spongetech Delivery Systems Inc (fka SPNGQ)

[Webwyrm]

I think what people are wary about is that 300 mill AS post split is the equivalent of 30 bill now. It does make one wary of dilution as the ratio will be higher after split between AS and OS.. but if they wanted to dilute they could be doing it now too.. and im only slightly worried about it, because as an investor you have to take these things into account. but still holding long and strong.

[underdog150]

Spin, lets say that both the A/S and the O/S were the exact same 900 million, pre split to make the numbers easy..
A 100 to 1 split would reduce the O/S to 9 million shares outstanding. If you only reduce the A/S by a factor of 3 to 1,
900 to 300, then the post split leaves the A/S 97 TIMES higher than is was pre split. How is that possibly good for shareholders? I believe that's the correct ending number with my obviously biased basher math?
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wadi: Maybe I'm mistaken, but aren't only O/S effected by a r/s? Then assuming that is the case, and if the A/S of 900m would not have been reduced effective 9/22, then wouldn't the A/S still be 900m after 9/22?

So, in effect mgmt. is reducing A/S by 2/3 from what it was --because r/s do not effect A/S. What am I missing here?

So, You are looking at the A/S reduction to 300m post split as if it is a disguised 30 Bil. pre-split. And I do not think one can view it that way because r/s do not effect A/S. I guess my logic is different than yours. Spino