Re: <$5 PPS GKRichard/patientman
in response to
by
posted on
Jan 09, 2009 07:36AM
Let's go back a bit...
Can you name any of these investors? I tend to think they're a myth. Like shorts are always blamed for price declines, <$5 PPS is always pointed to as a barrier to some magical pool of cash laden investors
to which I replied,
Reverse splits can make a stock attractive to many institutional investors who often do not buy stocks priced under $5 per share. They are also sometimes used to increase the stock price enough to meet a stock market's listing requirements
Can you understand my confusion with your response?
Right. I know that. Many funds and institutions have rules with minimum PPS. But it is wrong to deduce from those rules that hitting $5 suddenly makes a stock attractive to those investors.
Obviously, hitting $5 does not of itself make a stock attractive to investors, however, the $5 price does open the stock to investment analysis and it is this analysis that is of paramount importance to the Company. It is on the radar, at last.
As to the fundamentals, it is those that will take the price to over $1, and it will be then, and only then, when a split would be given serious consideration. I have yet to read of anyone suggesting a split at current prices unless in opposition to such and having no valid argument to support that stance.
Be well