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Microcap & Penny Stocks : MPTVE - Turnaround With Huge Potential -- Ignore unavailable to you. Want to Upgrade?

To: Tradenride who wrote (5729)	3/14/2000 9:19:00 AM
From: ISOMAN	Respond to of 5783

Plus the shares wont hit the float. Uhmmm, yes they will. an increase in common stock is just that, an increase in common stock. The only differencxe with this situation, is that there is no reverse split. if they increase the authorized and outstanding, your % ownership of the company still decreases. If they reverse split, then issue more shares, then the % ownership still decreases... Truth be known, long term it would have been better if they had reverse split and then issued more shares... the reason being this... lets say the stock price was 5 cents when they reversed 20:1 that would leave the price at $1.. with me so far... Now, let's say they wanted to raise $10,000,000 that would mean they would issue 10 million shares. ---------------------------------- now, the flip side... let's say they increase the authorized, and the stock goes to 20 cents..... ok.... and they want to raise $10,000,000 this means they need to issue 50,000,000 shares... now, what do you think will be easier for the company... to get a market maker to sell 10 million shares at $1, keeping the price around $1 (you can bet they would keep the shares at or above $1 if they had 10 million shares to sell from the company) or to sell 50 million shares at 20 cents... It's all really six o one, half dozen another... Personally, I would have rathered seen the reverse now, before construction... Get the weak out, let the stock crash, then let the strong hold, and then have construction start with a much smaller outstanding share count.. Just my thoughts...on the whole thing... ----------------------- But the thread is right, R/S splits are more psychological, then reality base. The fear with reverse splits, are that once reversed, they'd just issue more shares, exactly what MPTV intended to do... but, now they're just increasing the outstanding, and issueing more shares... so what's the difference... The stock will probably go up....let's see if it holds...