BBDB859 wrote: Hey Ralph.
Sorry I didn't respond to you yesterday. Busy day. When I got in yesterday I was too tired after responding to LE to do it all. So I just responded to LE. I'm veging today so I'll get to them today.
What you're saying bellow is Partially right that Institutional investors don't care about the nominal Price of the Shares. Yes they would pay $25, $50, $75 etc. and yes that would be a 100%, 200%, 300% increase in the SP. But that's not what I'm worried about.
Follow me on this logic if you would.
Say I owned 100K shares
If the SP before the split was at the $4 dollar level.
Then I would have $400K after the split. Say they did a R/S at $4/S for 6 to 1. The SP on Monday would be $24/S. So this R/S accomplishes close to the same SP of ($28/S) as the chosen 25 to 1 R/S of today. Then say the $24 SP went to $48/S. Same 100% increase after the R/S of 6 to 1 would give me $400K X 2 = $800K.
Now the reality. Say I have $100K again
At $1.13 SP I have $113K before the split. Now I still have $113 on Monday after the 25 to 1 R/S. So now as you say the stock goes up to $48/S after the the split, then I would only have $226K at $48/S.
It's a big difference at where the S/P should have been done for the R/S. Compare the first scenario to the Real second scenario of what really happened. I would have $800K in the first scenario above as opposed to only $226K in the REAL scenario.
This is the difference.
Instead of doing a R/S at the higher SP levels.
The Family was Hasty/Impatient and didn't give the SP to climb. With all the positive news in BBA coming in the next 1-3 years. The SP would have climbed to maybe even higher than $4/S to maybe even $6/S in 2 or 3 years. If they were patient enough? The SP could have gotten to $10/S in 5 years. No one knows that it would reach $10/S in 5 years. But i would have waited for it, because I'm a true Long. BTW, from this $1.13 SP to $10/S is a TEN FOLD. 100K X $10/S = is $10M. Try getting getting a TEN FOLD with Monday's R/S price of $28/S. That SP # would $280/S. But even a ten fold at the $1.13 scenario, would only net me $1,1M. It maybe possible one day 10 to 15 years from now. But I'm already retired, and by that time, who gives a shite.
So you see. IMHO. It's easier for the SP to get to $4/S than to get from $28/S to $112/S. But the biggest killer of this is the ORIGINAL EROSION of our INVESTMENT.
They could have waited for the SP to get to a higher level and do a smaller R/S of say 5 to 1, where our investment is less ERODED.
Btw this remind me of the same mentality, of giving away the CSeries so quickly. What's the HURRY with this company to do things so quickly and make so many mistakes along the way????
Now your earlier post..
Cheers
raphaelle2 wrote: Hey 859, Your reasoning make no sense at all. SP increase from 1 to 2 or 3 $ is the same thing than a SP increase from 25 to 50 or 75$ after RS. Both represent 100 and 200% relative increase. Look at BRP ( DOO) SP variations during the last 3-5 years: from low 25 to high 125! Mind you BRP is attracting a very big proportion of large institutional firms. These guys know how to calculate and are not being influenced by the absolute SP value. Contrary to many penny stocks "dealers". Thats why I am looking forward to see a change in the type of investors.
BBDB859 wrote: Hey Sham
I'm waiting and seeing and maybe what say will happen. What else can I do? The Family makes all the decisions for us. They call the shots.
Do you think that the Bomber shares will go to $54 a share in a year? That's when we'll double our current investment next. When we were at $1.20, all we had to get to was $2.40/share.
If you want to triple our investment now? Then we have to get to $81/share. Before, all we had to do was get to $3.60/s. When do you think this $81/s will come? In one or 2 years.
This is what's going on now. As for shorters. I don't know too much there. They may short just as easy at the $27 SP. But there definitely are less shares to borrow out there now. Only 86M float.
I won't change my handle name again. Don't worry about that. I stand behind what I believe.
The rest that I have to say to you, is in your private message box. Because you wanted an explanation of why I had to changed handles.
Cheers
Shamhorish wrote: LET US WAIT AND SEE
and when all you accusation prove to be wrong
i hope you will come back to this post and EXECUSE YOUR SELF
amd may be change your posting name one more time as you changed it from 145 to 859
by the way, why did you change your stockhouse user name??