Replies to post #58846 on Options Media Group Holdings, Inc. (OPMG)

[Dannyboy4]

Take an imaginary company with 100 million O/S for example:
If you own 10 million shares and there is 100 million O/S, you own 10% of the company. After a 1/10 R/S, you'll own 1 million shares and there will be 10 million O/S in the company, therefore, you'll still own 10% of the company.
There are now 10x less O/S, which means shares are 10x harder to buy. Ideally what would happen is your 10 million shares would go to 1 million, but the pps would increase 10x higher than it currently is (in an ideal world - according to supply and demand). Therefore, your 10 million shares would be worth the same amount as your 1 million shares.

Apple has a current market cap of 400 billion (i think)..
If they did a 1/10 reverse split and I owned 10,000 shares, I'd now own 1,000 shares. Apple would now have 10x less outstanding shares.. So, that would mean they would then have a market cap of 40 billion instead of 400 billion right ? Wrong, the market knows what apple is worth, and the shares would each go up by approximately 10x, which would put apple back at a 400 billion dollar valuation because that's what the company is worth.

I don't care if I have 1,000 shares worth a dollar or 100 shares worth 10 dollars. It's the same value!
The only reason a R/S scares penny stock traders is because the market really doesn't have a concrete valuation of these penny stock companies, usually because there is no way to value penny stock companies (no financials, no sales, no inventory, no product).. The current pps is where it is because of trading, and not because of the intrinsic value of the company. With a company like OPMG though, it doesn't matter how many shares are outstanding, anyone with half a brain can see that OPMG will be worth much more than 7.5 million (current market cap)..

That's why I don't care about all this R/S nonsense. OPMG currently has a 7.5 million dollar valuation, and imo, that is and will be, way..... WAY UNDERVALUED !!

VALUATION
1. Once OPMG begins to monetize, the market will decide what the company is worth. If they decide that OPMG is worth 90 million and we have 900 million shares outstanding, each share you own will be worth .10

2. Again, if the market decides OPMG is worth the same amount (90 million) and OPMG currently has 90,000,000 shares outstanding because they did a 1/10 R/S, each share you own will be worth $1

There is no difference between #1 and 2.. You're shares will be worth the same amount. It all depends on how the market values OPMG, and my bet is that they will value us much... MUCH higher than 7.5 million - current market cap !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


OPMG