too many shares - horni, page-15

re: too many shares - rubbish Slick,

I like the way you put that - "your investment stake would be the same only packaged differently"

I totally agree that's the case for a stock which has 'matured' - i.e. when the value of its assets and its ongoing business are reasonably well understood.

But in the development stage of a company, when it starts from scratch with no confirmed assets (resource), and as its potential is being confirmed (or otherwise) as is the case for NEO, then to have such a large initial share register does I believe make a difference.

If you look at those start up companies whose share price did rocket in their early days, you'll often find they did so because they had a relatively small number of shares on offer - this makes their acquisition tight, which as you say boosts their value because of their scarcity. NEO's nearly 500 million fpo's and god knows how many options means that there'll always be heaps of stock for those who want it. And thus it is in my opinion, that large share registers don't make for spectacular sp increases.


..... and one other thing - I'm still not convinced that NEO has found any bonanza gas flows yet. The operators (as I've already posted) would have at least a ball park idea of what they've found. Secrets can never be kept, so why is the sp doodling around 5c still, with the spp only days from exercise? Maybe it's that share register......

anyway, thanks for your reply, I enjoy your posts, but I'm afraid you haven't changed my mind about humungous share registers. Although it's sort of moving the deckchairs, I'd like to see a consolidation of shares, as someone else mentioned - at least then the sp would move by 0.5c instead of the infinitely boring 1/10 of a cent.