InvestorsHub Logo

Booger Red

02/11/11 11:09 PM

#51936 RE: Jeff-M #51930

Jeff, I'll give you a quick idea how this would affect someone that bought 1 million shares at a penny....that'd be 10,000 bucks for a million shares. Now after a 500 to 1 split, you'd be left with 2,000 shares at a pps of (now this is a wag) let's say 2 dollars. Now your break even point would be 5 dollars......10,000 shares at 5 dollars = $10,000 bucks. I firmly believe that following the proposed R/S and subsequent increase in authorized shares, Matt will be able to take CBAI to the next level. Matt will have the necessary capitol that will allow him to acquire additional companies...companies that are already profitable. The pps will increase as Matt grows this baby. IMO a $5.00 pps will be a piece of cake...we'll surpass that by a large margin...again...just my opinion. So, if the pps reached half of ML's prediction, your 2000 shares would be worth $100,000. By contrast, when the pps reaches 10 bucks, your 2,000 shares are worth $20,000....you've still doubled your money.

Fire up an excel spread sheet and do some doodling. I think you'll find that the split is actually a good thing. This is our road map to an increasing pps and uplisting to a real exchange, as well as attracting a much larger investor base. Sure the hit to my share count sucks, but so does .004, we've been stuck there for a long time....stuck in a rut. Things have developed over the last year that are ripe for the picking....trouble is, it takes money to pick up these nuggets. The R/S accompanied by the increase in the A/S will allow Matt to continue growing CBAI and get us out of the trading rut we've been in for the last year.

I hope this helps...and good luck to ya.

BTW, everyone needs to vote YES, or it's kinda like shootin' yourself in the foot. A NO vote will further stagnate the stock and we'll remain in this rut and more than likely, continue to drift lower. On the other hand, a YES vote will allow Matt to continue to grow the company, uplist etc. and our pps should continue to increase......all in my humble opinion.

Starlost

02/12/11 7:58 AM

#51943 RE: Jeff-M #51930

Jeff, it makes no difference. You have already seen the value drop by 20% just with the announcement. A R/S now would put the PPS at $1.50. By the time it goes through the share price may be closer to $1.00. REVERSE SPLITS suck the life out of a stock. The current investor will lose about 50% of his value here after all is said and done. If you originally bought in at 1 penny, then the chances of you seeing any value close to that after the R/S is very unlikely. This would mean the stock price would have to climb from $1 post split to $5. You're looking at a 400% increase needed just to get back the value you once had. And at these dollar levels it will take much longer, if ever to achieve. Whereas, back in sub-penny-land you could possibly see that within days or weeks depending on what's going on with the traders who play these stocks.

The value of the PPS will be around $1 after the split and the dust settles give or take .50.

This is a depressing day and scenario for all the longs here.