Post by
Ricnat on Feb 17, 2017 1:03am
Finance 101 Benzo
Rollback effect.., short term has a negative effect. Watch UMB with same shares issued investing in weed... it went to .025 to .08 with a good news. So forget .30 with cannabis investment in short term. It is almost 3.5 bagger. In mid term, if they need millions $ financing... could you imagine the dillution... that means tough to increase the SP.
Leverage and market cap:
Now let say 2M$ ... as of today... we should stay around .65$ not loosing money in short term period. We will loose in short term if PP is made at a ridiculous price like .50$ (.02$ actual)... but let say we search 2M$... means 4M shares at .50$.., it makes 2M$ to invest to increase market cap in mid term. We will have big opportunity to increase even more our market cap with only 6,8M shares.., and others PP at a higher price duting time UMB wont be able to reach more money.., with great leverage with so few shares. Watch story of CGC... you will see how we were lucky in mid/long term to had that 25 to 1... consolidation at the lowest SP level as it is right now. Of course, if we stay in minerals without success... our investment will worth almost nothing in long term.., let see the name and pp price! GLTA