RE:RE:RE:RE:RE:RE:RE:RE:RE:What’s the consensus here? Yes some miners do well with higher share counts for various reasons.The reason for not liking a high share count is this.
Taking Marathon as an example while the share count grew they still had a large institutional following and the number was acceptable to those ineven with their excellent results they had a much lower commitment by larger investors perhaps due to location which is not for everyone?
Now with almost 780 million shares this becomes a negative for some larger firms and won't or may not attract larger investors. To attract larger investors companies need to maintain higher share prices.Mutual funds have policies against taking positions in a stock whose share price is below minimum valuation. What happens to CXB after the merger and share issuance may not allow instituions to participate? One reason I expect a share consolidation or reverse split. CXB trades at around $1.30 after share issue what will the price be? We can only guess but fact is dilution drops the valuation most times. Failure to to qualify for purchase by large institutions lessens the companies trading ability or liquidity and reputation and analyst coverage. Not saying CXB has a bad reputation but the share count is now a detriment.
Just my opinion and I'm not negative on CXB, will see how they report next Q in a few more weeks and what analyst have to say?