Re: splitting SMH may or may not be good
in response to
by
posted on
Oct 27, 2009 06:18PM
You can look at the amount of shares outstanding or the intrinic value.
As these companys will both be public in the future (I hope sooner then later) it will be drivening by the market demand and how much money they raise and what they do with the money. I was using an example. I owned stock in a company that split. You got one new share of a new company for each share you held in the original company. One company now trades at .35 cents and the other company trades at 8 cents. When I bought the stock I payed .24 cents. So you can see I believe in free stock as now my investment on paper is worth .43 cents. For about a 79% gain. SMH at this price has to be a cheap price to pay when you are told they are going to split the company and give you free stock in a new company, so in my opinion I will hold my stock in SMH.
Remember they did a financing at .25