low operating costs, page-8

No problem JJ, love your work.

The number of shares is irrelevant as shadders pointed out many times here.

e.g.

you buy 1,000,000 shares in pen at 10c
value = $100,000

say PEN consolidates at 1:10

your 1,000,000 shares now 100,000
value = $1.00


The thing I do like about having the shares PEN has, is liquidity. Good for traders and investors alike.

Look at the buy depth on offer at a time on some stocks that have low number of shares. If you held 100,000 shares and were finally ready to capitalise your profits you would be hard pressed to just sell 100,000 shares on a low volume stock unless you dribble fed your shares into the offer. If you simply placed a 100,000 sell you may be lucky and it eventually all got taken or you may not.

On the other hand if you held 1,000,000 PEN shares, or more like some lucky ones ;), then you would have little problem selling into a high volume day in a single or maybe 2-3 parcels.

Brokers have the advantage here in that they will use those wonderful bots at no additioanl cost to them or clients. They will also manipulate the sp to ensure they get what they want.

We are the ones disadvantaged, in that if you merely sell multiple parcels you have multiples of brokerage (free kick for the brokers and banks at our expense), and you will most likely push the sp down get less for your shares.

Not a huge problem if you are the only one who has decided to capitilise. However a big problem if there are others doing the same.

Having a lot of shares on issue does have advantages.