Udflyerfan:
in response to
by
posted on
Nov 15, 2007 11:34AM
I understand what you are saying but this stock went from .3 to 2.1 in a matter of 2 months. Look at the charts. 670% gain. The volume was 200-300 million per month. It does matter if it is in pennies or dollars! It is much easier to buy a million shares of PTSC with high risk and high payoff than a stock like Chipotle for an individual or an institution. Stocks have to show the possibility to be extremely lucrative for people to be invested.
Reverse splits are toxic just like warrants. It didn't seem to the average shareholder, that the spurious damage that S&L played/worked on the company was occuring when it initially happened. This stock has gone up 670%. If a reverse split had occured before that event it would not have gone up 670%, it would have gone up dramatically less. This is the gamble and the payoff of an OTC stock. Place RS into the formula and you have destroyed the gamble and the payoff. I know this is true.
What you are saying that mathematically there is no difference is not true in the reality of stocks buying and selling. Shareholders take the profit cut and no one else. This is what companies like CTIC, JDSU, have done and ruined their stock. It will take them years to recover if they ever do.
I have to quit for awhile. I firmly believe that this stock will be selling for $5 a share by mid January. There is no way, if an RS occured that it would be selling for $50. Never in a million years.
Regards