Twin Butte Energy Ltd TBTEF

RE:DRIP share consolation prize

[PUNJABI]

You have a point for long term investors that are trapped in the stock. They will get lot more shares that is some kind of compensation for holding on.

But there is another side to it. Very high cost in terms of dilution at very low prices. TBE has been issuing about million shares every month. It may increase. It is not good for the float which is not that small.

Some one was talking about buyback. How can you have buy back when you have a drip program. First drip has to go.

I beleive in a smaller tight float. The float of the TBE is not small & its getting bigger. When you have a larger float it requires a bigger volume to move the stock.

Understanding the fundaments is very important but one has to understand the market mechanism which also has an impact on the movement of share price.