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Baystbully

02/25/13 11:59 AM

#35594 RE: wexahu #35591

I agree with you wex. Makes no difference. Look at Siri. Boatload of shares out but low pps. Needle doesn't move.

FUSE in contrast is not bloated like SIRI.

A reverse split is not needed.
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BAR123

02/25/13 4:20 PM

#35600 RE: wexahu #35591

Give the kid a break he is new to investing. He will figure it out but the basic math is as follows:

If:

DROP has 200,000,000 shares and the do a 20 for 1 reverse split they would then hae 10M shares. If the price was .20c when that happens it would be $4 per share post split.

If you have 10K shares when the split happens you would then have 500 shares. 10,000 / 20 = 500. Your value of the shares pre split would be 10K x .20c = $2,000. and post split would be 500 shares x $4 = $2,000. the same value. I hope this helps.
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prokopton

02/25/13 7:40 PM

#35622 RE: wexahu #35591

All things being equal:

Small float: Stock moves much quicker during a run because of supply constraint; it's riskier shorting a stock with a small float. If the shares are in a few hands, provides price stability; less shareholders.

Large float: Harder to move during a run; stock price is lower and more affordable to retail investors, more shareholders.