Re: Special Resolution - the proposed share consolidation..Snug....
posted on
May 26, 2008 04:08PM
I want to say that I appreciate you stating your views,but I feel we should be opposed to any R/S and vote against it. IM O,at this stage of developement I see NO BENEFITS OF ANY KIND to shareholders of a R/S . I have been involved with a number of such deals in my past investments and NOT ONE OF THEM BENEFITED FROM A R/S. I am not convinced at all that this one would be any better. A post R/S share price of .32 (assuming a 1 for 4 ) would in absolutely no way deter day traders ,bashers,etc. from doing what they do to these stocks. Many day traders are active on stocks with much higher SP and I am not convinced that ANY R/S will deter them . IMO, the spread will unlikely change much,if any . IF SPQ WAS IN PRODUCTION,MAKING PROFITS,THEN A R/S could be absorbed by the market and a neutral or positive effect for shareholders (post R/S) may be possible. For speculative penny stocks such as this one I say lets stay clear of any sort of R/S as we will end up on the short end of the situation.