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Johnny4profits

01/14/11 8:25 AM

#7464 RE: StocktraderDK #7459

Why an RS...........

"Which means it should be easier for it to go to 0.1 or even 1$, what do you guys think?"

Here is what I think. Well, anything is possible in the microcap world! However, I have yet to be involved in a falling PPS position that chooses to do an RS and then find that the outcome is positive. Not saying it can't happen, but in ten years I haven't been in one yet. Every time I lost my ASK.

I figure that you have to ask yourself why they are in the situation in the first place. Let's see, more great PR language and little or no cash to back it up? That's a common one. Lots and lots of forward thinking? Yep. Ya think!

Let's say that the company does have all this great business ahead of it and the RS isn't setting everyone up for more dilution. Let's say that! In that case trust will be restored over time and the stock will emerge with the company.

In the mean time, an RS........... is the KISS OF DEATH, at least to most of the traders I have ever known. If it isn't for a trade up to NASDAQ or the NYSE, what's it for? What, to lower the share count? Why? DILUTION, printing shares..............

I've been following this stock for awhile and just couldn't bring myself to pull the trigger. I couldn't find enough substance to add up. Now I'm glad. What may emerge here is in reality a good opportunity. As the post RS share price cascades back to near the pre RS PPS, some good buying can take place before the stock runs. That's of course if there really is any value in it and it appears to be worth a position. That's always the gamble. More so when a company has exercised an RS. Mmmmmmm, not good.

Good luck riding an RS through. Really, Good luck.........


:( sentiments

NOTE: IMO. I do my duh duh ("DD"), you do yours.
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ManicTrader

01/14/11 11:10 AM

#7469 RE: StocktraderDK #7459

Compensated Awareness Post View Disclaimer
Yes imo this split will be good for the company going forward.
No one can predict share price, but new financing deal should cut down on the dillution
I also see more acquisitions and good news coming down the pike