We have a GERS DEF 14C out HERE.
It looks the same as the prior GREENSHIFT PRE 14C HERE.
If you hold your shares in your account (vice held by your broker) you should get some kinda mailing from GreenShift - soon - telling you about it.
SkunK
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6 comments:
so ultimately what does this mean? they will do the split and eventually our current shares are gonna be worth only a fraction of what they are worth now?
My understanding of the process is that your number of shares will be reduced, however, the value per share should increase. Effectively, your reduced shares should retain the current value of all your shares, or increase slightly - though I would not anticipate a significant increase in value initially. If this is not correct, SkunK, please advise!
Lets use numbers we can get our arms around. The principle is the same.
Say there are 1000 total shares of a company and you own ten shares. Also say the company is worth $1000dollars. Your ten share are therefore worth a dollar each - and your investment is worth 10 dollars.
Now say the company does a 10-1 reverse split. Now there are 100 total shares and you only have one share.
Remember - the company is still worth 1000 dollars - the worth of the company did not change. So now you have one share worth $10. The worth of your investment did not change.
The problem comes if the 900 shares that now become available to the company to issue to pay bills and raise capital - will they be issued slower or faster than the increasing worth of the company. If the company increases in value 4 times and the company issues another 100 shares - you still double your money. If the company issues another 100 shares and stays the same - your investment loses 50%.
Like always - its always about the change in company earnings. If this company is profitable by the end of the year the value of the company will obviously go up.
Tell your Congress: Keep fueling the future!!
SkunK - I'm having GERS withdrawals. I stalk your blog daily - anxiously awaiting even the tiniest tidbit of news!! Post something - please!!!! Anything wil do. Tell me how you spent your holiday weekend! Just post!
Yes, I do have a life... it just seems like lately it revolves around your blog! :)
OK - lol, I get something next 24, thanks.
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