GREY:YSSCF - Post by User
Post by
DarrenYaToJumpon May 11, 2019 7:59pm
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Post# 29738399
Consolidation (Good or Bad?)
Consolidation (Good or Bad?)Here's my thoughts on the move.
I inquired about consolidation of shares 2 months ago with investor relations and was given a blanket response. I am for it, as I believe that SOLO has too many shares outstanding.
Let me explain.
Consolidation can be a sign for publicly traded organizations that are not performing well, but SOLO is not, except for the Red Deer location, performing at all. SOLO is just starting its operations and it has had the intial strategy to grow slowly for quality control purposes. I think SOLO is consolidating its shares in order to create a greater opportunity. This company has potential and is awaiting 23 retail licenses. 7 stores built, inspected, and waiting.
From a financial standpoint SOLO is OK with staying operationally stagnate wilst the cannabis supply shortage is holding back the licensing issues in the province of Alberta.
Having said that,
I believe SOLO, soon to be YSS, will be to attract more investors in the future.
Here's why.
I suspect YSS is going to apply to be listed on the NYSE and to do so they need to meet certain requirements and criteria. One requirement to be listed is to have a higher share price, and most investors do not think penny stocks are attractive investments. Being listed on the NYSE creates more visibility for YSS and they can become part of mutual funds and attract larger investment groups. That's why I think consolidation is a good idea.
Hold this stock for 3-5 years and you will be successful my friends. Hold it for 10-20 years and you will be an official investor.
Cheers!