RE:News: Commerce Res Share Consolidation [Reverse Split 10:1]
Really interesting news! Mr Grove clearly has something going on now.. finally. We all know the market forces behind this investment. For any rookies, this does not mean your investment will increase x10 fold, neither decrease. It's just a reduction of the nr of shares outstanding. Now, why does this NORMALLY happen? In most cases it is to be able to move a penny stock over to the big boys, you need a certain shareprice to be listed on larger exchanges. So, if you are able to move there you can expect higher liquidity if the stock is popular. That's the most normal reason and could be part of a long term plan here. If you want to be paranoid, you could think it's to be able to highly dilute the nr of shares after the reverse split. But I ask you to think if you really think Mr Grove would shoot himself in the foot at this point in time, when market forces are all in our favour. Then there is the psychological effect of having a higher share price, we have been hovering in very low digits, share prices the big players never operate. Adding a zero behind the current price will make it possible to buy and sell the shares in a easier fashion. Imagine if you want to do high frequency trading on the current price, it's not possible becouse the market makers steal everything after 0.0600X . So you see it's needed . If and when we come to some dilution, we also need to have some room for it. Diluting 0.06 with let's say 10%, higher figures makes it easier to divide the shares values. I am not saying I am predicting any of the above to happen, but use your coconut yourself and ask yourself, why..why are they doing this Now? Right now with USA showing interest and USA and Canada finding common grounds in the REE space? Why now when Asia and Europe are screaming for REE? Heads up fellas. Klemmi is gonna try to influence u