News Focus
News Focus
icon url

stervc

09/02/10 10:17 AM

#25953 RE: playerguy #25792

playerguy, if I was the SSWC CEO...

If I was the CEO here with SSWC, I would retire the 6 billion restricted shares back to the Treasury. That would reduce the Outstanding Shares (OS) down significantly. If he has no desire to sell, what better way to prove such to your shareholders.

That would add tremendous valuation to SSWC because the OS is what is used to assess the fundamental valuation of a stock. The OS is the key denominator used to derive the Earnings Per Share (EPS). The lower the OS, the greater the valuation (or potential valuation) existing within a company.

He could still maintain a controlling interest by giving himself preferred shares with whatever majority ownership conversion ratio he likes that would be covered under a newly reduced Authorized Shares (AS) which reducing the AS would be the next step. I've seen a few other companies do this and it made a world of difference which greatly enhanced investor sentiment. If he wants to create huge investor sentiment, he would do this in my opinion.

v/r
Sterling