To: Juraj (Yuri) Krajci who wrote (548 ) 4/8/1998 10:05:00 PM From: AuldDruid Respond to
I was agreeing with Ruby that a stock consolidation would probably have to occur to get a trading value of interest to less adventuresome larger buyers and institutions on senior exchanges. I indicated that a pullback would occur as I noted in my post, as an example, from .40 to .30, so the 10 shares you owned at .40 would likely enter the market at $4, but immediately fall back to $3 for a short term loss of 25% IMO - of course, any sort of wild thing could happen, but this has just been my experience, over the years. Noone has any fancy explanation for it, it just happens - it could be investor boredom until the new IR team kicks in - I don't know what it is - you'll have to think up your own explanation. However, the advantage is that there is now a very much larger pool of monied investors to listen to the 'story' and get interested in buying the shares, then we could ever muster here on the VSE. If, the story is good, and the investment reasonably safe from serious downside due to cataclysmic failure, and I think both of these will be true eventually, then the larger pool of investors will catch on over several weeks or months, and quickly drive past the $4, erasing the short term loss to the original shareholders, and having themselves bought in at those levels, will hold tight for significant profits, even during down fluctuations(firm hands), possibly giving the original shareholders substantial profit. Of course, a lot of people try to trade this effect for both the short term and the long term profits, but you have to be a pro day trader, or at least pretty darn nimble to do it. You could probably magnify your profit by another 50% doing this, if you're both quick and lucky. Don't forget the "lucky".
