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Southstone Minerals Ltd V.SML

Alternate Symbol(s):  FDGMF

Southstone Minerals Limited is a Canadian junior mining company. The Company holds a 43% interest in the Oena Diamond Mine (Oena), an alluvial diamond property, located in the Northern Cape Province, Republic of South Africa that consists of one New Order Mining Lease. The Oena Project is 8,800 hectares in size and covers about 4.8 kilometer (km) wide strip along a 15 km length of the lower Orange River. Oena, a producing alluvial diamond property, is located within an alluvial diamond mining province about 50 km upstream of Namdeb’s Auchas and Daberas alluvial diamond mines, located on the Namibian or north bank of the Orange River, and about 15 km and 60 km upstream of Trans Hex’s Reuning and Baken alluvial diamond mines. Its subsidiaries include TGV Resources (Pty) Ltd, African Star Minerals (Pty) Limited, and GAH Mining (Pty) Ltd.


TSXV:SML - Post by User

Comment by jngolferon Nov 07, 2019 5:04pm
62 Views
Post# 30324109

RE:RE:RE:This stock is toasted

RE:RE:RE:This stock is toastedFacBine, sorry but I think you got the math right, but you did the opposite of what actually takes place when there is a share roll back/consolidation.  I'll explain. A reverse split takes multiple shares from investors and replaces them with a smaller number of shares in return. The new share price is porportionally "HIGHER" leaving the total market value of the company unchanged.  For instance, say a stock trades at $10 per share and the company does a 1-10 reverse split. If you own 1,000 share --- worth $10,000 at current prices --- you'll get 1 new share for every 10 old shares you own or 100 new shares. The stock price will rise tenfold to $100 per share. This transaction leaves investors a smaller position still worth the same amount. One of the main reason sa company does this is to get the stock price up so it won't be delisted. The transaction isn't a good look for the company, and it actually allows short-sellers to be able to borrow new shares and keep betting against the stock.  Thus driving the share price down by the Bumpers and dumpers!  
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