Great Bear Resources Ltd. GTBAF

Think a tight structure can be a blessing and a curse !

[Goaweigh]

It allows a Co. to get some lift off after good news and get itself financed at decent prices without too much dilution which is exactly what happend here, the tight structure worked very well indeed.
But now that money is the least of our worries and our focus is increasing our market cap ASAP I'm wondering if our structure, high stock price and lack of liquidity isn't going to impact our ability to increase our market cap as quickly or as easily as we'd like.
Up until recently we've still been in the realm of the retail investor and although we certainly haven't been a penny stock for quite awhile we were liquid enough that retail could buy what they wanted without too much trouble. Plenty of windows of buying opportunities for retail. But now that we are heading to double digits I'm thinking that retail will be less and less inclined and we really need all the institutional buying we can get to take us up to the next level/s. The problem now may be that a lack of liquidity could sideline a bunch of institutions who would like to play but can't get in without ramping the share price all by themselves. 
So maybe a stock split my solve noth problems, make the price a bit more attractive to retail and the liquidity more attractive to institutional.
A 2 for 1 might do nicely for Canadian Retail and Institutional buyers but also I believe American buyers are far more inclined to buy stocks with better liquidity too, they're used to very large numbers and feel a stock with good liquidity is less likely to be one that is being manipulated.
Just a thought

[rborhi]

Are you f'ing kidding me?  You want a low number of shares outstanding with a company like GBR that has these kinds of goods proving out.  I wish there were less shares outstanding.  This is a blessing not a curse in any way!

[IvanHoe86]

I dont think GBR wants to drive up the price insanely high, once they are done and looking for a buyout they will have to value the company based on ounces inferred and not solely the secondary market, or am I missing something?

[iDiditMyWay]

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[Goaweigh]

No need to get hostile, there's a sweet spot in every deal and I'm not sure we are in it right now. We certainly were when we started out but as a Co. matures it's needs change and so will ours. Diamond Fields had a very tight structure to start and I believe they eventually split the stock getting them to 100,000,000 and it certainly didn't hurt them one bit, they were taken out

[rborhi]

Sorry, no hostility intended if it came out that way.  If our biggest problem is a fast rising share price due to a fast rising market cap from a low number of shares o/s, then that is a problem I'll take every day!!

[Ghostofrljp]

My "thougth" is you are rather new to the market.  If its going to go. Its going to go.  Valuation is valuation. Whether a billion shares or 10 million. If its going to go. Its going to go. If it only had a million shares its still going to go to the market cap valuation based on the resource present.  I iterate. If its going to go. Its going.  And more likely

[ROIHunter]

Hi Go, I disagree.  I think you are overthinking things. 1) when stock go up liquidity is created, because there are always shareholders who will sell some or all of their positon as the price rises. 2) the problem is easy to fix as you indicated, the stock can be split. 3) the company can always do a pp at higher stock prices and bring in institutional investors who are chomping at the

[tbnorthstar]

Stock while not a take out candidate quite yet is still getting a sniff or two from majors. They have to keep an eye on these types of plays. 

[HansonLockyer]

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