OTCPK:REMRF - Post by User
Comment by
loosechaingeon Oct 14, 2009 11:06am
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Post# 16386537
RE: RE: RE: 54% combined
RE: RE: RE: 54% combinedJohn I will agree with some of what you said but to look at it in another light.
if Roxmark shares move from 25 to 26 cents the companies value increased by 4% your holdings incresed by 4% in value for a penny tick. Usually the penny stocks tick in half cent increments look at it now trading 22.5 23 23.5 etc.
when the stocks are valued over a dollar they don't move in half cent increments and have much better chances of moving nickels.
One other point is I think the combined company is still way undervalued by the market. If the share consolidation happens and the stock gets over $2 on toronto your stock becomes marginable. So as an example a 100,000 sahres of Roxmark costs you 25 grand say and your buying power in your account is zero. Now if you only owned 10000 shares of newco and the stock trades at 2.50 your value is still 25 grand but you have the ability to margin your account increasing your net buying power. I too have a very large position in ONT non marginable at these prices but if we can get the stock over 2 with the share consolidation hmmm I think I could maybe deploy some more funds and maybe a lot of others with huge positions would free up some capital reserves so to speak.
It would long term add strength to the share price.
1 more note on this basis is the majority of funds don't really like playing penny stocks on the venture. If the stock trades in the dollars on the TSE different ball game with a bunch of new players. Both companies combined are entering a new playing field. Management needs to postion the company for this new field. I like it and would really like to see the stock over $2.
Sometimes best to stand back analyze the big picture and if you were the mangement what would you do? Forget the pennies lets make some dollars.
do your own dd