CDO Doing What it Has to to Increase SPCDO is doing what it has to to increase shareholder value. The share consolidation is because of Mineralfields and insiders (thanks Renee) keeping the share price down with their relentless scalping, which has kept the share price down. The new investors are p*ssed off and fed up – they planned for a higher share price so they could do the financings need to go forward. This roll back does not have to happen, and hopefully it won’t, but it is hard to see how CDO can ever move forward with this relentless scalping. Reed and the new investors are doing what they have to in order to move forward. Read between the lines of the new release: the financing was arranged for (with MF) and then share price drops because of heavy selling (by MF), who then want to extract a lower financing from CDO, at .05 instead of .10. Reed and the new investors are doing what they have to wrestle control from the death grip of Mineralfields.
I am not an advocate of a share consolidation, but it is hard to see how CDO will our get out of this quagmire of Mineralfields / Renee / other penny flippers. If the share price can move up in the near future, then a consolidation will not be necessary. And if it does happen, I wouldn’t worry about the share price slipping much – these new investors are already in deep and are not getting to let that happen – they would be cutting their own throats because they have somewhere between 22 million and almost 30 million shares. It is in their self-interest to not let CDO drop.
Crash