Replies to post #33759 on Hong Yuan Holding Group (HGYN)

[Omnesion]

There's no contradiction. In THEORY, a RS has no effect on the stock's value. In REALITY, it usually always results in loss of shareholder value. The AS are, of course, by definition, dilutive. I'm simply saying that if AS are issued (and they will be), it usually always occurs before a RS happens. It seems somewhat counterintuitive, but selling additional shares and the resultant dilution is usually less harmful to the company's long-term value than a RS is. In any scenario imaginable, though, it would NEVER make sense to do a RS BEFORE issuing additional shares. The entire point of a RS is to not only raise the pps to a level where it appears more attractive to institutional and certain other investors, but to also REDUCE the float. You'd never reduce the float FIRST, and THEN issue 2 billion additional shares. I hope that helps to clarify my previous statement. Good luck.

[xZx]

what about the AS raise to 2B? is that off the table yet?

A reverse split does not have any effects on the stock !
Additional shares does !