Stock Consolidation (Reverse-Split) Talk.... As many here may have noted... there is now active discussion in favor of a reverse split... not just by the usual bashers who show up and slam a stock.. then disappear.
On the other board (#Ceo.ca/adz) it's being advocated by:
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@Fischlaender Even if hole 4 is halfway decent, I think the sensible think at this moment (as painful as it might be) is a share consolidation minimum 1:5.
@Fischlaender @pgtips I have held more than 1% of $ADZ float at times, so if you do research do it properly.
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If you don't understand the what I'm talking about, why companies might want to do it, and its effect on share price.. I'll explain.
A 1:10 Reverse Split.. or 1 for 10 reverse split means exactly how it sounds.. you get 1 share for every 10 you currently own.
After a reverse split.. the shareprice pretty much always tanks... and tanks hard. You'd think it rises by 10x.. but it doesn't... it absolutely tanks in comparison to what it should sit at.
It is done for a few simple reasons...
1)A good strong stock with a proper revenue sources, strong management and business plan might need their stock price to be at a certain level for the company to sit/list on the Nasdaq Exchange for example.. or get fund coverage in a particular industry.
In these cases the fundamentals are strong..so the price doesn't tank.. it retains it's value and simply adjusts to the new formula.
2)A dreadful penny stock with woeful management and prosects can't dillute any further.. meaning there isn't enough downside to factor in another financing.. (It can't be done in smaller and smaller increments any longer).
There is a few scenarios in between .. but that about sums it up...
So a guy claiming to be a large shareholder calling for a consolidation on the company's tout board... Yeah... that sounds a little fishy.
Why would someone want their net holdings to possibly crater several hundred percent below what they already tanked in recent days? I suspect he sold his position entirely.. and the reason he wants the adjustment is because he gets shares for services rendered etc.. and sees more upside potential after a reverse split.
The real answer here is to replace the perpetually failing CEO IMO... shenanigans aside.. the guy has already done one consolidation... and produced nothing in all the years since.
Diamonds North never found anything worth noting either... Mark lived large off of it.. shareholders were subjected to the same shenanigans witnessed here recently.. and the game keeps on keeping on... because it's always about the stock!!!!
Had the EO released the poor results the hour he received them.. the market would have reacted.. the share price would have dropped.. and it would have been forgotten within a day or two.
But in order to do that.. this "gang" would have missed out on all that glorious opportunity to sell while Coffin lied to you all about the lab repeatedly lying through their teeth to mark about those darn results being delayed.
The problem isn't the float (Amount of stock outstanding).. the problem is the CEO...
The other day we saw an over-reaction.. most of those shareholders will never touch anything this CEO is involved in ever again.. they weren't reacting to poor results.. they were reacting to finding out the poor results after this "gang" lied and sold into the hype.
But this is what the CEO here does... he sucks money out of investors.. manipulates.. deceives (with the help of Coffin this time).. and then does a rollback.. and tries to do it all over again again.. each time having a far smaller pool to prey on.
The only credit I will give him is he does try to actually mine... some of these characters operating off-exchange don't even do that much...
...unfortunately.. any Ceo who holds back bad news while "In-The-Know" entities sell ..as the company tied propmoter lies through his teeth to them.. is known as "NFG" in this industry.
The three most important rules when doing due diligence for investing??.. Management! .. Management! .. and Management!
The talk of a rollback is ocurring on that board now because that is the next move I suspect.
... Expect your remaining holding to tank yet again if they do.
This "gang" will always play the stock.. they will always manipulate, lie.. deceive... they are at war with you.. they resent themselves having to sit on their shares while you sell.. so.. the industry has devised ways of insiders illegally playing their own stocks.. but you have to have a way to keep retailers from selling... hmmm... I know.. pretending to send the assays through the car wash twice as a normal part of pre-disclosure is one way they justify keeping you suckers holding while they sell.
I suspect the BCSC would provide evidence of both god and extra-terrestrials before ever stepping into deal with even one of these blatant scams... they represent as much a fraud against the investor (by way of pretending to protect them) as do entites like Mark, Eric and the "gang".
The only way to deal with this.. is for investors to do it themselves.. pool monies.. explore options.. and set in motion a mechanism that will over time become the actual deterrent.. as opposed to the jokes at the BCSC and even the exchanges (They were once the best at halting this nonsense by detecting it via volumes and trades etc and forcing the company to disclose its news.)
If the BCSC stepped in and exposed this scam.. the industry that ultimately doesn't just pay them.. but sets their off the charts outrageous pay scales... well it would be furious.. because guys like me would sue entities pulling this nonsense.. we'd group together.. and sue. It's too expensive without the help of disclosure from the powers that help fleece.. I mean powers that be.
This industry.. much like the RCMP for example.. sweeps its crimes and shenanigans under the rug.. it's all about image. Better to hide the corruption than route it out... victims be damned.
So ultimately stay tuned.. I'm going to take a serious run and providing some tools for retail level investors.
Cheers!
InDaMoney ;-)