GREY:ISOLF - Post by User
Post by
pabalooon Apr 02, 2019 11:30am
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Post# 29570066
I’m laughing until it h
I’m laughing until it hThis is by far the best site for laughs. Some of you should write comedy shows. So here’s my 2 cents. Company X has 1 million shares at 10 dollars. (10 million) they buy company B for 20 million in shares and now have a net worth of 30 million. The clowns running the company soon after drive the company into the ground and the shares drop to 10 cents. Smart like they are they immediately do a reverse split 10-1 and drive the price back to a buck and now there’s only 3 million shares outstanding. The clowns decide to sell company B but can only get 5 million for it poor souls. They sell company B buy back the remaining 3 million shares through a buy back and pocket the 2 million outstanding. I think in this scenario these boys should win business of the year. The only ones holding the bag are company B who was foolish enough to sell for shares and no cash and for the bag holders who owned shares pre consolidation. If you buy now you miss the uptick on the shares unless of course you don’t trust the guys running the show. I can’t see why not they are buying in to grab a slice. The names and company here are strictly fictional and no attempt was made to imply this is what happened here. Just saying it looks odd.