Reverse Split, Shares, Structure
posted on
Jan 23, 2021 10:56AM
A reverse split doesn't change the value of market cap. It normally would be a disaster if the company was starting over and needed to raise new funds to pursue a new idea. The difference here is that Poet is not starting over. They are ready to launch with something highly needed and anticipated to be in high demand across different verticals in the tech space. What Poet has is a platform generated gadget that inserts into global companies' products. That automatically will make Poet large and their customers, perhaps even larger. Therefore, if there is anyone that wants to share in a segment of what Poet is doing, they will likely bring in a large amount of cash and demand marketing rights for its vertical while demanding a fair stake in a joint venture. Why I say that is that I don't think that SV, Vivek and the BOD are blind to the true value of Poet. So I think that Poet will likely become of holding company of new publically traded partnerships for each pillar or any new ones defined along this journey. No matter what, a new share structure will likely happen.
In anticipation of a Nasdaq listing in the past, Poet reach close to $3 Canadian on about half the shares outstanding of today. But this time the opportunity is clearer and it has defined 4 pillars or markets that are huge. So any sniff of a Nasdaq listing should easily reach at least $3 US or much higher in my opinion.
Even with a reverse split and getting a listing on the Nasdaq, high growth stocks have a familiar pattern of trying to reach $100US per share. $5 US per share is still like a penny stock in Nasdaq mentality. Nasdaq is home to the mega-giants of technology stocks. So from whatever angle I observe Poet at is that their market cap should be much higher, even with a R/S.
monolithic