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Gold/Mining/Energy : Copper Fox -- Ignore unavailable to you. Want to Upgrade?


To: mahzman2 who wrote (9993)3/31/2016 4:52:03 PM
From: cpac  Read Replies (3) | Respond to of 10654
 
So, with all the volume today, is that the smart money getting out or, the smart money, getting in?



To: mahzman2 who wrote (9993)3/31/2016 6:08:21 PM
From: louel2 Recommendations

Recommended By
mahzman2
mudguy

  Read Replies (2) | Respond to of 10654
 
The benefit for the company is it makes it easier to do future financings. As there are fewer shares to unload for who ever fronts the PP in order to regain their investment. The same applies to making profits from the warrants.
As mud says some are more readily attracted to companies with lower share floats. It alleviates the risk of roll back which is possible here.

Roll backs do not reduce nor increase the value of what your holding relative to the company value. as long as your ACB is the same as the current share price at the time of the roll back it would have no affect. Except that when a consolidation is done. the new S/P normally has a tendency to sag again.
KLH is a good example dropping back close to another 50%

However there is a twist If your ACB is lower or higher than S/P your losses or gains will be magnified per share in direct relation ship to the ratio of the roll back.
If it takes a price rise of 50 cents from the current 12 cents for you to break even presently. After a 10 for 1 consolidation the price would then be $1.20 and would have to rise $5 to $6.20 to break even. Vise versa if your in profit.

I have been caught in a couple it is not good. Usually it is devastating for an underwater share holder. A company can roll back 10/1 without share holder vote. Greater than that they are required to take a vote. unless they do it in separate 10/1 or less increments over a period of time.

The only individual who could actually gain in my opinion would be EE. For him it could be a golden egg as I have stated before.