Ok...I'd first like to say that I know EVERYONE in the world hates this company, which is understandable and I'm asking this as a general question out of curiousity, as I'm still very new to this "game" and enjoy learning all aspects of it. I'm NOT asking this because I think this is a good company that is worth investing in, so please don't yell at me =)
With that said, here is my scenario and question. Before the latest R/S took place, this was trading in the .0002-.0003 area. So for simple math reasons, let's say you just bought 1,000,000 shares at .0002 for a total investment of $200. After the R/S, you now have 1000 shares at .20.
There is the scenario, now here is my question. Understandablly this company has a bad rep and is disliked, but with the float being very low, just under 10 million I believe, why in the world would people still be selling at .006? With the above scenario, selling 1 million shares at this price would get you $6.00 back. I myself would lose money after the commission! Now I understand that people want out, and alot of people have more then 1 million shares, but even still it just doesn't make sense to me to take such a huge loss. You're better off just holding and hoping with the O/S so extremely low (at least for the time being). It wouldn't take much to move it, so why not poke and hope....can't lose much more, lol.
I'm sure there is a valid reason and that's why I'm asking the question. I've learned so much on here already and appreciate all the helpful posters on here!
Posted by cactus33 on :
they keep diluting with every r split. thats all they do. they will dilute until the sec grows enough courage to stop them. start with a low os and end up with a monster. then r split and stert all over again.