Argex Titanium Inc. ARGEF

Reverse splits, the good and the bad....

[billr861]

The bad side to a reverse split is when a company has no income, the sp is all about perception of value. Do a reverse of 1 for 10 and sp goes from 3.5c up to 35c with no supporting income to validate the increase it becomes over priced to the market and the sp drops after the split. However, if done when the company HAS income, it can definitely improve the 'look' on paper that the co. has. Example....Argex has 5c of profit, sp is $1.00, and share count is 700M.  Now do a 1 for 10 split and the numbers become more palatable.....50c profit, sp $10.00 and shares drop to 70M which looks like a much better investment. Under this scenario, the sp is supported and should continue to climb.  
  Unfortunately, Argex has no income so no profits and we should NOT do a split at this time. Once we have income and profits, THEN would be a great time to do the split.
    Vote against the reverse split at this time!

[TomKCam]

billr861, A company valuation is never based on its stock price, but on its market cap. Being overvalued or not, undervalued or not, is sometimes more speculative, sometimes related to hard data (revenue). The investors (big money), we are looking at, quite understand this. I'll say that Argex is currently leaving the speculative area. So, it is OK to consolidate. You have to consider that

[billr861]

Uhhh, the share price times the number of shares IS the market cap so the share price DOES determine the market cap. And consolidating the shares will make it easier for anyone attempting a take over.  And until a company has income, the share price is speculative based on whatever the market thinks it's future might hold and that will  vary from investor to investor.

[Napoleon001]

It's possible that the reverse consolidation timing for within 12 months of approval is based on their agreement with ECEC and that company's ability to secure financing for the projects that have been idle pending financing. If that is the case then we could expect that the consolidation will be strategically timed with the financial numbers that have been noticeably absent from the

[TITANIUMJOE]

I agree Nap. if the consolodation is part of the ECEC agreement in order to enable financing. This is the valuable info that RGX should share with their shareholders. It's hard to vote blindly.

[TITANIUMJOE]

BTW... Good to hear from you Nap. I wondered if you had sold off your shares and vanished.

[netsil]

Ya'll need to be patient, and listen to bill. Freaking smart man