IN THAT CASE, I agree 100% with you John...that is the right move at this point. You have excellent motives.
FAMH HAS screwed up a bit if they indeed issued that many shares to a couple insiders....I agree it is important for them to at least admit it. just so we don get lost in it. When a company goes public and you read a prospectus, the number of shares that the insiders have must be disclosed. So let's try to get it, but just not overblow it's importance. Also until there is absolute proof of the insider share count, what someone told anyone orally is not valid. It could be a fired employee or someone who is jealous. Or it could be real.
BUT EVEN IF TRUE....THE MAIN THING IS EARNINGS AND PE
The value of a stock is determined most importantly by it's PE among it's peers in the same industry, at least if the market caps are about the same.
Again, the PE is what's important, which is simply a ratio of earnings to number of shares outstanding:
A company which earns $100,000 profit with 1,000,000 shares outstanding has the SAME PE (and therefore should have the same aprrox. SHARE PRICE) as a company which earns...
$10,000,000 profit with 100,000,000 shares outstanding.
There are many companies with a higher share count than FAMH trading at greater than $1.00 or even $5.00 |
