-------------------- Making it a little at a time....Now is the time to determine if you are a man or a mouse. Posts: 1543 | From: Ogilvie, MN, US | Registered: Apr 2004
| IP: Logged |
"In other news, the company has given notice of a shareholder meeting for June 12th, at which the shareholders will be asked for authority to amend the articles of incorporation to effect a possible reverse split of the company's common share capital."
TALK TALK.........they cant do **** unless stockholders SAY SO!!
Posts: 404 | From: MS | Registered: Nov 2005
| IP: Logged |
quote:Originally posted by beatheodds: Why is a reverse split bad?
A reverse split is the opposite of a stock split. A 1:10 reverse split means that a company gives you one share in exchange for every ten you own. The purpose of a reverse split is to raise the share price of the stock, and thus increase its marketability. If a stock has fallen to $1 per share, a 1:10 reverse split should raise the value of the stock to $10 per share, all things being equal. The capitalization of the company and your percentage of ownership in the company don't change.
It also gives them lots of room to flood the market with a lot more shares, making the value much less. Not saying this will happen here, but if they RS and then flood the market with more shares, driving the price down and doing another RS over and over. This is why it is so hard to guess what will happen in the pennies. I'll wait and see what happens.
Posts: 2132 | Registered: Sep 2004
| IP: Logged |
posted
From what I read, the R/S would be discussed at the meeting, nothing set in stone yet. Even if they do R/S, it would probably be better for the company anyway, ie: higher exchange, higher share price for more traditional investers, etc. I am down 50% on this, but you only lose money until you sell at a lower price than you bought right? I am hanging tight for a bit...
Posts: 2741 | From: Seattle | Registered: Feb 2005
| IP: Logged |
posted
Usually on an announcement like this it closes about 1/2 way between the open and low of the day...but who the heck knows ....USE YOUR OWN JUDGEMENT...
Posts: 2660 | From: Pennyland USA | Registered: Jun 2004
| IP: Logged |
posted
They need money and figure that an RS will allow them to change the ticker and develop a new batch of suckers.
-------------------- Making it a little at a time....Now is the time to determine if you are a man or a mouse. Posts: 1543 | From: Ogilvie, MN, US | Registered: Apr 2004
| IP: Logged |
quote:Originally posted by nar31977: NO...!!!!!!!!!!! READ
"In other news, the company has given notice of a shareholder meeting for June 12th, at which the shareholders will be asked for authority to amend the articles of incorporation to effect a possible reverse split of the company's common share capital."
TALK TALK.........they cant do **** unless stockholders SAY SO!!
company insiders hold the voting majority, we as share holders will have nothing to say in the matter, if they approve an R/S ( and they probably will ) common share holders like us will have no say in the matter. the only ray of hope here is that we have until at least the 12th to flip this for whatever we can!
Posts: 2503 | From: connecticut | Registered: Mar 2005
| IP: Logged |
THEY SAID.........stock holder meeting....to TALK about it...
Actually they said to vote on it. That's a lot different than just talking about it. It says the company has every intention of doing it.
Reverse Splits aren't always bad. About a third of the time stocks do better afterwards. If a company has faith in their ability to make money but they feel that their stock price is their biggest hurdle to being listed on a better exchange, it only makes sense to do a reverse split. The nature of the film business, which is HIGHLY cyclical, makes coming out of the pennies extraordinary difficult without outside influence because of the daytraders that drive you price WAY up and WAY down on every film release. With even the slightest hint of bad news or one week after a deal when it will be another 3-6 months before any major news your stock plummets to levels that are very difficult to come out of. This wouldn't happen to the same extent if the price was $0.25 instead of $0.0025. An investor's willingness to invest longer than a week is necessary in this business, and you don't get that in sub-penny.
Posts: 59 | Registered: May 2006
| IP: Logged |
posted
"The company's film "All That I Need" was positioned as a direct to consumer DVD, for which foreign sales were estimated at approximately $240,000. "
That amount is hardly worth the cost to make the disks.
-------------------- Making it a little at a time....Now is the time to determine if you are a man or a mouse. Posts: 1543 | From: Ogilvie, MN, US | Registered: Apr 2004
| IP: Logged |
THEY SAID.........stock holder meeting....to TALK about it...
Actually they said to vote on it. That's a lot different than just talking about it. It says the company has every intention of doing it.
Reverse Splits aren't always bad. About a third of the time stocks do better afterwards. If a company has faith in their ability to make money but they feel that their stock price is their biggest hurdle to being listed on a better exchange, it only makes sense to do a reverse split. The nature of the film business, which is HIGHLY cyclical, makes coming out of the pennies extraordinary difficult without outside influence because of the daytraders that drive you price WAY up and WAY down on every film release. With even the slightest hint of bad news or one week after a deal when it will be another 3-6 months before any major news your stock plummets to levels that are very difficult to come out of. This wouldn't happen to the same extent if the price was $0.25 instead of $0.0025. An investor's willingness to invest longer than a week is necessary in this business, and you don't get that in sub-penny.
A reverse split almost always dooms the longterm outlook. It is almost always better to get out and buy back in after the RS if you think the company is worth anything after that.
-------------------- Making it a little at a time....Now is the time to determine if you are a man or a mouse. Posts: 1543 | From: Ogilvie, MN, US | Registered: Apr 2004
| IP: Logged |
posted
This will probably settle somewhere between .0016 and .002...
The MM's took this down when it tanked hard on 5K signals and weren't filling many sells until they hit .0018 to .0014...They took a bunch of sells at that level...then filled up to .002...
Posts: 2660 | From: Pennyland USA | Registered: Jun 2004
| IP: Logged |
posted
We'll probably be lucky if the pps ever reaches .0020 again.
-------------------- Making it a little at a time....Now is the time to determine if you are a man or a mouse. Posts: 1543 | From: Ogilvie, MN, US | Registered: Apr 2004
| IP: Logged |
posted
I think the reason IPRE is tanking is everyone and their brother is buying XKEM, The reason IPRE ran in the first place was because the sales was expected to be great. This PR was bad news.
-------------------- "Try not. Do or do not. There is no try." ~ Yoda Posts: 411 | Registered: Apr 2006
| IP: Logged |
quote:Originally posted by BlindMellonChitlin: An RS is bad 99.99 percent of the time.
I R/S is never a bad thing. This is the company retiring stock. It raises the PPS. Alot of traders think it is a "Bad thing" only because they lose quantity of shares, however the PPS always raise to equal what you had money wise or more.
Posts: 2063 | From: Europe | Registered: Feb 2006
| IP: Logged |
posted
This PR was not and is not bad news. If you people do not realise what is actually good for a stock perhaps you should not trade.
Posts: 2063 | From: Europe | Registered: Feb 2006
| IP: Logged |
After the RS the pps will be the old pps times the RS ratio...then TANK back to less than half what it was before the RS. Been there done that a few times....got the T-Shirt.
-------------------- Making it a little at a time....Now is the time to determine if you are a man or a mouse. Posts: 1543 | From: Ogilvie, MN, US | Registered: Apr 2004
| IP: Logged |
posted
ANY talk of an RS is ALWAYS bad news for a penny. An actual RS will screw the current share holders for certain.
-------------------- Making it a little at a time....Now is the time to determine if you are a man or a mouse. Posts: 1543 | From: Ogilvie, MN, US | Registered: Apr 2004
| IP: Logged |
quote:Originally posted by beatheodds: Theres no chance of getting out at all?
Sure, you can sell at any time. I'm hoping for a dead cat bounce so I can keep my loss to a minimum.
-------------------- Making it a little at a time....Now is the time to determine if you are a man or a mouse. Posts: 1543 | From: Ogilvie, MN, US | Registered: Apr 2004
| IP: Logged |
Buying back takes capital. If they had the money to buy it back they wouldn't have had to sell it in the first place. You generally don't want to see an emerging company doing large buy-backs, that means that they're not investing their money back into their company to make you more money.
Posts: 59 | Registered: May 2006
| IP: Logged |
posted
i think the best thing for every1 would be to hold for a bit longer. as we all know, they may or may not do an RS there will be more news about that. Better to hold then sell at these levels.
Posts: 4071 | Registered: Dec 2005
| IP: Logged |
quote:Originally posted by Robbie English: This PR was not and is not bad news. If you people do not realise what is actually good for a stock perhaps you should not trade.
MABEY NONE OF US SHOULD TRADE. I'M NOT SURE ABOUT THE PR BUT TANKING 45% IS BAD NEWS!!
-------------------- "Try not. Do or do not. There is no try." ~ Yoda Posts: 411 | Registered: Apr 2006
| IP: Logged |
posted
This announcement so soon after the PR stating, with glee, that they had finished diluting and couldn't do it again for a year seems fishy.
I think they had planned all along to do the RS if it was necessary. JMO
-------------------- Making it a little at a time....Now is the time to determine if you are a man or a mouse. Posts: 1543 | From: Ogilvie, MN, US | Registered: Apr 2004
| IP: Logged |
posted
lets say they dont rs and they say there buying back. good way for them to buy them back for nothing now its in the ground.they done this shizz on purpose they know damn well what would happen when they put that pr out
Posts: 1510 | Registered: May 2006
| IP: Logged |
quote:Originally posted by vinnie1: lets say they dont rs and they say there buying back. good way for them to buy them back for nothing now its in the ground.they done this shizz on purpose they know damn well what would happen when they put that pr out
Nice dream...but don't be grabbing at straws.
-------------------- Making it a little at a time....Now is the time to determine if you are a man or a mouse. Posts: 1543 | From: Ogilvie, MN, US | Registered: Apr 2004
| IP: Logged |
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
