Say you have 10k share at a cost average of 1 dollar pre split.....Which is were we should be trading. After earnings and six months it is extremely safe to say we will a trade at least at the 1.30 to 1.75 level, this equates to 10k x1.30 or 10k x1.75 so your 10k investment will render you 13k or 17.5k.
Now say your cost average of 10k shares at 1 dollar again...pre split.....10k investment The stock splits 8to1 @ .70 cents opening @ six bucks rendering your 10k investment of 10k shares into 1250 x 6 bucks leaving you with 7500....down 2500 bucks----now AUNFF takes off from 6 to 9 level rendering your investments to 1250 x 9 = 11250.
If you can't see this.......you must be playing with your grandmothers money because you not smart enough to make it on your own. They are taking our 17.5 jackpot and turning it into 11.2k measly gain on a 10k investment.
IMO a reverse split can only be a positive for this company and if you do like this company it has to be ALOT more attractive now at this price.
I have seen no other information that tells me otherwise.
Sentiment: Strong Buy
Your model doesn't make a lick of sense. Current share price is .70 cents, post-split would make it around $6. If, as you think, company fundamentals don't change and we were to have reached $1.75 pre-split, then post-split the shares should sit at 14. In either case, you would've made the SAME AMOUNT OF MONEY pre-split or post-split. What is it about a reverse split you don't understand? The market cap stays the same, the float is just reduced while the price rises in accordance to the proportion of the split (8 to 1 in this case). You have the exact same market value as you would have pre or post-split. You are somehow confusing our downward movement to this R/S announcement...when in very fact we would've been down either way the last week due to general weakness in the PM sector.
Say a fellow bought 10k shares at 1.15 that is 11500 dollar investment. AUNFF after splitting would have to go to 9 bucks before he makes his money back, and he is still negative. Frankly, we should be there now, not at .70 cents.
Ask club, if the action on AUNFF has been legit that last couple of months. This stock is being pushed down to get to the shares outstanding down to a respectable level. Silver in the 30's and increased production from Shafter will send earnings......at least a third higher from last quarter. My PGLC is at highs.....my HL is holding its own.........No freaking way this is .70 cents a share and legit. This is nothing but a shiiiiiiiite sandwich and I don't care too much for the taste of it. My cost average is probably .89 cents so it is not that big of a deal for me. But I was planning on making some money with this thing. This is great if your just buying in......but what about the guys who bought at 1.15?
I think the following factors combined to give us the price drop this week:
Silver lost $2 this week
Reverse Split Announcement caused some traders who enjoy the low liquidity bailed
Too much pressure on stock when it was already pushing on its key low 80s technical support
Once it broke through 80 cents we were almost guaranteed to fall to the next support line in the 70-71 range. I bought more on Friday and will buy more if it breaks through this support and falls to low 60s technical support (which is stronger). Barring a positive news announcement, I would be surprised if we don't fall further IF silver/gold continue to fall.
Your logic is dumbfounding. In your first scenario you say that the stock is going up anywhere from 85-150% after 6 months (which crazy to expect that btw)?? But then you don't account for that gain in your second model!! Why would it only go from $6 to $9. If you say it is going to gain 85%-150% in the next six months then the share price should go from $6 to $11-$15, not the $9. This is 6th grade math. My grandmothers are both dead, but if I was investing their money I sure as hell wouldn't take advice from somebody who cannot do basic math...
Sentiment: Strong Buy
What I am saying is the share price would be higher if there was no talk of a split. You are not taking that into account. They are getting ready to release the highest earning they ever had and we are trading at .70 cents. My math was based on the reasonable assumption that we should be trading at 1.00 and the shares would have been bought at 1.00. So, in theory....I was comparing 1.00 to 1.30 as 6 to 9 (10 would have been the correct number) but it just makes my theory look more reasonable.
You don't know what you are talking about. At the RS your value is the same as before the RS. At that point it all depends on the market price of silver, the company's performance and interest by institutions at the higher share price. It would certainly help to get listed on the NYSE too. GLTA
Sentiment: Strong Buy
Even numbers work better.
Conan Silver Seeker has 8K shares at $1 = $8,000.
Share price rises $1 his worth is now 8K shares @ $2 = $16,000. 100% gain.
Soloman Kane has 8K shares at $1 = $8,000.
His shares are R/S 1/8 and now has 1K shares at $8 = $8,000.
Share price rises $8 his worth is now 1K shares @ $16 = $16,000. 100% gain.
This will work at 5, 10, 25, 50%, etc.
This is the psychology of big vs. little numbers. The quantifier is the percentage move. It must be the same for both cases. We all think initially that more is better. We are human.
The question I ask is this. Does at 10% increase is s/p at 8K shares ALWAYS translate to 10% at 1k shares (post R/S)? If, the equal percentage quantifier is removed, then what Colelittle was describing is valid. Thus, .50 cents pre-R/S must be equal to $4 post R/S. The answer I believe is that the share reduction from 560M shares to 80M shares (1/8 R/S) creates the percentage quantifier.
Did I stop making sense?