stervc Share Saturday, February 05, 2011 11:18:35 AM Re: mick post# 16305 Post # of 17372
mick, with your thought...
Usually that is the norm within the penny stock world, but we still have to see that it is somewhat psychological. It doesn't matter whether you have... 10 shares at .01 per share... or... 1 share at .10 per share within your portfolio; the value is still the same which is a .10 value.
However, within the penny stock world, reverse splits generally mean bad news for repetitive dilution reasons from companies with the wrong intentions. There are a few companies that positively survive after executing a reverse split and prove to be for positive reasons. Hopefully this is the new situation for us here with PDMI/PDMID. Many of us were under the assumption that a reverse split would not happen here with PDMI/PDMID, but looking at it now, maybe it wasn't such a bad idea.
I could be 100% wrong, but I’m guessing that they just might be near getting FDA approval. I’m thinking that the only way they would be brave enough to reverse split PDMI with such an unnoticed way of informing us shareholders would be because they might have something positive up their sleeves. It’s having a little wishful thinking, but you never know. I think these 3 posts below sums up much for the current situation here with PDMID:
I actually called Ameritrade on this issue and they confirmed what many have been unsure of for years. It is just as the first link above explains courtesy of CollegeGrad22. Even though there is a psychological effect in the reductions of the shares in our accounts, there is an actual effect that takes place from the transition of shares for the entire OS.
Quote: -------------------------------------------------------------------------------- In actuality, your old shares are canceled and erased completely. You are then issued completely new shares registered by the company. This is why sometimes there is a lag between the switch out between the two and is also why the brokerages cannot perform a quick calculation and allow you to trade the "old shares". They have to receive the "new" ones first and then credit them to your account. This is also why these stocks go through the "D" period for 20 days and from my understanding they cannot dilute during this timeframe. Hope this helps some of you who are confused about this. --------------------------------------------------------------------------------
The company absolutely cannot do any form of dilution during this transitioning period of shares from what I was told by Ameritrade. Knowing that any kind of dilution can’t transpire during this phase, if FDA approval comes out during such time frame, it could set the stage for something very nice.
The share structure is updated on pink sheets as of Feb 3, 2011 to be as indicated below:
As one can clearly see, the Outstanding Shares (OS) for PDMI is 5,192,519 shares. This means that the Float can be no more than 5,192,519 shares. Given that the volume has been over 22,800,000+ shares traded over the past two trading days since this transitioning of shares, I would have to venture to guess that the Float is either gone or nearly gone. Keep in mind that the breakeven point for those who were holding shares pre-split is .01 per share. Given that the price has mostly stabilized well above that area, I would like to think that more of the small Float have definitely been absorbed.
If we get the long awaited FDA approval that we all have been waiting for within this 20 day time frame eliminating any and all dilution fears, things can get very interesting here with PDMI/PDMID. This could be a huge turnaround.
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