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Bullboard - Stock Discussion Forum ARPETROL LTD V.RPT

"ArPetrol Ltd is engaged in the exploration for and development and production of oil & natural gas, and also provides natural gas processing services for third parties in Argentina."

TSXV:RPT - Post Discussion

ARPETROL LTD > 1:25 share consolidation
View:
Post by yycimport on May 26, 2014 5:10pm

1:25 share consolidation

Does anyone have comments or concerns on the share consolidation, if approved, to happen next week?
Comment by TheRock07 on May 26, 2014 7:16pm
As I explained earlier, it will be very beneficial to the market cap. It will enable funds etc to acquire shares either directly or thru finanicings. Analyst coverage is another benefit. Consolidations are beneficial when there are solid assets supporting the market cap and especially when those assets are barely reflected in the market cap... as is very much the case here. Now is also a good ...more  
Comment by rookie79 on May 27, 2014 12:05am
1:25 share consolidation seems to be too much.. Why wouldn't they do a 1:10 instead? Just my thoughts..
Comment by RTWODTWO on May 27, 2014 2:56pm
A 25:1 roll back will be about 25M shares outstanding. That is a better solution if you want to raise cash in a PP or so. If a sp is $0.02 it smell like something is not right. Everything gets better actually when I think a bit further. Easier for investors to have a quick lock at eps and so on, $0.XX instead of $0.00XXX. Mining stocks get rolled back due to failure. This one got assets above ...more  
Comment by TheRock07 on May 27, 2014 3:12pm
That's correct. Consolidation will be done by June 2 
Comment by 2j3kl on May 27, 2014 4:36pm
This post has been removed in accordance with Community Policy
Comment by RTWODTWO on May 27, 2014 5:01pm
If there are any 4 cent shares left after the consolidation I would call it a bargain. The MCap should be around $1M. One could just dream about a situation like that. Say the gas processing plant is hypotetically worth $10M, you could buy $1M for $100K. Back to reality: Canamax, then Petroforte, did a roll back not very long ago and that one went just fine. The sp even took off a little after ...more  
Comment by bigzig on May 27, 2014 6:40pm
This post has been removed in accordance with Community Policy
Comment by TheRock07 on May 28, 2014 8:01am
I provided WED as another example of proce appreciation with consolidation. In both cases, consolidation was immidiaelty followed by a PP at higher prices than the consolidated price at the time of consolidatuon. Three months later and WED is nearly double its pre-consolidated price.
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