I don't know about you guys but I am voting against the reverse split. More often than not reverse splits do not go well. It gives the illusion of less value.
Initially investors react accordingly and pummel the stock. Historically these spits do not bode well. It will take longer now to retrace to its old equivalent highs of over $1. So if it is 8 for every one dollar the stock and now it is 73 cents that would be about $5.84 and it would now have to break $8. A penny stock of 73 cents has an easier time of going from 73 cents to $1; that could happen in a few days. But a stock that is 5.84 going to $8 usually takes weeks if we are lucky and only if the stock is on a roll. Vote against the spit. How dare you guys!!!!!
If you guys that run this company want to add share holder value DO A BUYBACK NOW! OR.......
THROW IN A DIVIDEND. IT IS NOT AS if you guys aren't going to be the #2 producer in the US very soon!!!!
I have seen and played this game many, many times before. I hate reverse spits!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Leave it as is! Why so then later on you can dilute it and add shares after we already have fewer?
I agree with you that it is bad timing, but I don't agree that all reverse splits are bad. And I don't agree with colelittle96 that we sold off due to the rs announcement. I think a buyback would be a great way to reduce shares outstanding and provide support for the stock. I think a limit order put in a 71 cents would ensure that we hold that level barring silver dropping below $26. I don't want a dividend right now, wait til silver is over $50 for a dividend. It will be much easier to go from current levels to $1 if silver turns around. I will probably vote no too, unless share price is over a dollar by then (which isn't going to happen). I am NOT against doing a 5 or 6 to one rs split once we are over a dollar later this year or next. I THINK LENIC NEEDS TO SHOW PATIENCE HERE AND HOLD OFF ON THE REVERSE SPLIT UNTIL SILVER RESUMES ITS UPTREND.
Sentiment: Strong Buy
Divy, I think we would have traded between .80 to .90 cents if the split was never announced. The split announcement flooded the market w/ warrants because the number of warrants would have split with the shares (which nobody would buy at the higher levels). This could have been done for a reason....just to get them out of the way. Who really knows? I could be wrong, not on the inside. This gets above a 1.20 and splits....I am happy.
I agree with them holding off for awhile. The whole mining industry has been going down. It is premature to think that just b/c they do a reverse split that suddenly the company will be viewed better. Once silver starts back on its uptrend I think we can see $1 w/o a reverse split. Once it stays above $1 perhaps a name change from Aunff to something w/ 3 or 4 letters would be better.
It has been there more than 2 times over the years for a brief period. I did speak to the guys from this company at the hard asset expo last year and they did mention a dividend. They need to to all they can short of a reverse split to attract people to buy this stock. It is soooo undervalued. They are ramp-ping up production.
I think I'm partial to agree with you at this point. "never buy a reverse split stock" This should be done organically. Especially a huge 8to1..I dont think tutes will be attracted to it like proposed. Voting my shares against it. The downside is way to risky for a small unlikely positive.
I actually don't think there is huge downside risk to the RS, but rather it will limit a lot of the upside. It would be much easier to gain 50% for a 70 cent stock then a $5 stock. Unfortunate, but that's the way the markets rolls.
Sentiment: Strong Buy