Share
350 Posts.
lightbulb Created with Sketch. 35
clock Created with Sketch. 25/02/18
17:32
Share
Originally posted by Pippedatthepost
↑
I'm not sure how anyone can think consolidation is good at this point. People are referring to this stock as a "rocket to the moon" etc. let's be real, this stock has a low price because every quarter it loses money. It has had no revenue and therefore it is only attractive to small cap dreamers, (of which I am one). With good flow results this will change. Eg of holding 5M shares purchased at .002 before consolidation. Let's assume after good flow results and when the company actually starts making money that the SP rises to .015 5,000,000 x .015 = $75,000 (total value of shares) After 16:1 consolidation 5,000,000 becomes 312,500 shares. To get $75,000 of value from 312,500 shares the share price has the reach 25c.. After 16:1 consolidation I would have 312,500 and the share price would be adjusted to .016 , but only at opening of trade. After that it could go far south. Other companies in gas, like SGC which currently have 12 working wells producing 1000 mcf/day and have a share price of .08 which is along way off the REL consolidation price of .016 and miles away from the comparison price of 25c . Why do people think SH value is achievable from 1 well? We are not on a sling shot to the moon, we are at the very beginning of what needs to be a slower increase in share price that maintains security for SH along with value. If there was to be consolidation before flow results and revenue I fear the conversion price of .016 will spiral down quickly and sit, just like it is now until the company starts producing gas and making money. It will be an interesting read at the end of Feb when Raven makes the announcement and try's to sell consolidation as a good option to SH who are currently sitting on large packets of shares and poised to make great $$ with even small SP increases. I will be definitely voting NO to consolidation at this stage. Once there's revenue I would be happy to revisit my decision. REL needs to learn to crawl before it walks
Expand
Pippedatthepost Assuming share price for each of 5 millions of shares today is 0.001, after consolidation 312,000 at 0.016 will cost the same 5,000$ as now…
