Just read about 2 posters here who talked to Dr. Chan at the conference and the Dr. said an r/s is needed to uplist. I was not familiar how this would effect us shareholders, so I googled it. Most places said we will lose the large profits we could have made from the small movements of the penny stock. When Citi Bank did an r/s, a shareholder called complaining that "NOW", he could only break even if the stock hits $600..I've read from some very smart people here explaining the r/s, but the bottom line still seems to be, we will lose a lot..With a 10:1 r/s, you'll go from 100,000 shares to 10,000 at $1. Yes, the shares are worth more giving you have the same cash value, but "still" , if the company "NOW" goes to $25 a stock, you will have $250,000...But with your current 100,000, ( with no r/s ), and the company goes to $25, you have $2,250,000...If this is wrong, please tell me. But if this is the case, then this is not good at all.....
Agtjerry1, I think what you're missing here is the general concept of why people buy and sell shares. Yes, some simply buy because the price "looks" cheap but cheap compared to what? Why are CTSO shares .12 cents? Simply put that's the value the overall market has put on the company. I think the shares are worth more therefore I'm holding shares long. Some think the value is less therefore they are short. Take into account all investors positions and the mean is .12 cents. This is a basic definition of market cap, (shares outstanding X share price). Of course there are all kinds of formulas and equations to determine the value of a company but this is a very common one. Google market cap, do some research and playing with the formula then come back here and tell me why a reverse split (excluding emotional reactions) does not affect a stock's future returns one bit.
I hope it does not come to a RS. Even at $3 as Short mentioned is to get listed but many funds require $5 for them to own the stock. I know I stated this before and I could also be dreaming but if sepsis is rampant, and a multi billion problem, And all the other "stated" uses for the filter and products form CTSO are figured into the equation and since there is NO other effective sepsis treatment available AND if the dosing studies and results return as some here predict as "great" or a home run and CTSO is already approved in the EU and is reimbursable in Germany already why would we need a RS. I know there is a ton for shares out there. But IF the filter works as planned/advertised it should fly off the shelves and be quickly adopted and reimbursed in the rest of the EU and any U.S trials we be fast tracked if the EU has a "CURE" for sepsis and the U.S does not!! I feel we should know this year the direction we will go RS and moderate growth or rocket off.
I hope it doesn't come to a reverse split as well, but I am resigned to the fact that this is a possibility. If it does, I am sure that the timing will be appropriate and executed according to plan. This would be a reverse split for the right reasons and not due to desperation to dilute further. I also believe that the dosing study is the key to if and when this happens. If the dosing results are stellar and the company is able to get a partnership with a lucrative up front payment and milestone payments in the hundred of millions then the stock could very well take off without the split and meet the qualifications. This is a potentially multi-billion dollar product just for critical care and this does not include hemodefend, contrasorb, drugsorb, and the other unnamed products that we are not aware of. In my opinion, many are underestimating the potential that this stock has and the value that will be placed on it due to the huge unmet need that sepsis represents. The results from the somewhat botched trial have to be confirmed and if possible improved upon for the company to get the respect and credibility necessary to garner big $$$. Good results will also help with the validation of the approach being applied and hopefully gain attention to the other products in the pipeline.
Did you really have to look that all up to figure out what a reverse split meant? EXPECTING your penny stock
to zoom up to $100 a share and make you a zillionaire overnight is just not realistic. However, handled properly a reverse split is a potentially very smart business strategy - the split doesn't change the value of your holding one iota, and offers the potential for increased stability of the share price, increased exposure, and the potential for institutional investor buying. The problem is when down-and-out, poorly run companies do it in a desperate attempt to avoid delisting or worse. CTSO is not one of those companies in my opinion, but it's languishing on the OTC board. Ideally, I'd hope for a split (if it happens) after some important announcement(s) and a sustained share price increase, but barring some miraculous turn of events it's looking likely to happen. Let's hope Dr. Chan and Co. do it skillfully and use it to keep things moving forward.
SRPT (used to be AVII) is one example that comes to mind of a did a reverse split and then had some blockbuster news that rocketed the share price. I wasn't pleased about the r.s., but things worked out ok...
Let me see why I think this company will make us a ,as you say, a zillionaire. First, an only successful treatment for sepsis, almost 100 KOL's , early approval, distribution in 1/3 of the world and growing, companies calling almost daily for dosing report, Washington lobbyist, Grants from Military, Device works in many other illnesses, more devices coming down the pipieline and on and on..Geez I guess I'm off base...And also I here your explanation, I'm just asking for a response to one thing. and that is about once a reverse split takes us to, lets say $5, we will now have to go all the way to $10 just to double our money.Which is not great but I'll accept it. I'm saying LARGE PROFITS from a "NO R/S" will be gone..
The ideal would be a move to .50 and then rs to 5.00. This will take real news, real momo, and real dosing studies and success. Snails pace ain't getting it done although as with everything there is still HOPE. Cling to it cause its all we got!
10,000 shares X $25 = $250,000
10:1 though isn't going to work at today's prices though. It would currently take about a 24:1 R/S to get PPS to $3, the minimum price needed to list to a major exchange.
If you had 100,000 shares now, then they did a 24:1 R/S you'd only have 4,166 new shares.
4,166 new shares X $25 = $104,150
Getting it from $3 to $25 will be a huge undertaking in itself, but maybe?
Thanks "shortsaretoast"..I do though understand 10;1 won't give us the $1, I'm giving the example from the other posters to keep the same number idea consistant. What I'm saying is once we do any split, the profits we all wanted to make (buying into a stock that was 0.10 and then bought out for $25) will be gone. Once the r/s is applied and lets say for example we are now at $5, we will have to go all the way to $10 just to double our money. It all changes after the r/s..Like I said, if I'm wrong, I hope someone can explain but I don't think its wrong.