Yes they will do a RS soon and yes all the deal shares will of course be reverse split as well. I guess they uplist in 3-5 months from now. Only my guess.
If their business continues to boom it's still an interesting stock once they uplist because they will then be very attractive to funds because of the price, they will have attractive low o/s once they did the RS and therefore also a low float.
The good thing of such a company is that even if they double their shares since I started following them due to heavy dilution they still have an attractive PE. That's the good thing if the PE doubles from 2 to 4 it's still very cheap.
:-)
All these shares now look very unattractive and dilutive (it is dilutive of course) and the company just looks like a penny stock pink sheet BS company but let them uplist and let them do the RS and then further imagine that they will do at least 10-12 million in net income next year. Don't forget that they will take over the rest of Subaye so this estimate is rather conservative.
Just think about it what you then have in 9 months or so from now on. You have a chinese internet stock, which is growing nicely, which is trading between 8 and 11 (or so) dollar, which has maybe 2.8-3 million shares outstanding and probably does somewhere around 3-4 dollar in EPS!!
So now do you think some funds wanna have some shares of such a company? My answer to this is yes but that is just my opinion.
Like I said above. All the dilution looks horrible right now but let them get all of Subaye the juwel of the company and let them do all the stuff they will do now and it could look pretty good in a few months. A stock with a PE of 1.5-2 can double their share count and is still a stock to die for, for all the funds out there.....and they are far away from the double since I started to follow them at 170 million shares o/s.
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