I've been involved with enough reverse splits to have seen that myself. Here's what I do know. This company is in the right space at the right time. Whether they have the muscle to capitalize on it or whether they need a partner to do so remains to be seen so the issue in considering whether to vote for the split is again whether you believe they will hit plan. Buy and hold used to be fine but things move at lightspeed now, especially for smaller companies and I think their fate will be decided well before five years from now.
yes you are right, you will find their fate much sooner than 5 years, however, time is still needed to roll out and get toward the tail end of the fruit of the business plan, people still sleep in this world.
as far as percentages decline, i think we should focus more on total market cap valuation of the company and buy when it is undervalued for the enterprise, and sell when it is overvalued. today i find that it is still undervalued to a 5 year potential, but fair value for today's performance, and nowhere do i see it is overvalued by any measure considering they are growing earnings from loss to profit.
Full disclosure, I own a lot of shares and have for some time. What concerns me about the split is the same thing that I have seen with a lot of reverse splits, a small disappointment from a higher stock price results in a larger percentage decrease. Cheating, I agree with you that if they perform on plan, likely won't hurt them but they've also had a tendency to mildly disappoint on the revenue and/or earnings side so I'm on the fence on this one.
a wise investor once told me, if you are long term on a stock, do not pay attention to short term fluctuations unless you are looking to buy more shares for the long term. Let forbes and the bank calculate your net worth, there's no need to see paper gains or losses everyday, it will just distract you from what you need to do in finding good investments. I know Jamba will be here in 5 years, and will be in a much better state/condition, so I know my investment will go up.
Why I want to reverse split now is because that value will be reflected then, not today, and people will forget about the reverse split then also. People already forgot this was once a SPAC.
I also own a bundle of shares and unlike the board goon who says I'm pumping, I have no need to pump, what I am doing is trying to shine the light on those that don't know how to analyze and see this is a good investment for its risk/reward potential.
"TO APPROVE THE ADOPTION OF THE JAMBA, INC. 2013 EQUITY INCENTIVE PLAN AND TO AUTHORIZE AN AGGREGATE OF UP TO 9,000,000 SHARES ISSUABLE UNDER THE PLAN."
So they get these shares before or after the RS ? I could use an equity incentive plan.
i'm sorry but i will be buying more shares to vote in favor of the reverse split. i believe this is much needed, only those who doubt the company will think it will fail as a result of the rs.
i believe we have been lingering as serruya has been liquidating his preferred shares, you can see it was down from 5mm plus prior to conf call, down to 4.1mm at conf call, and last report showed 2.1mm. after they've sold i think we can resume the move up.
I just am trying to point out two things regarding the reverse split.
it is badly needed at this stage. and we should all support the board who has requested this.
assuming jamba ends up to be a $1bb market cap company, the stock price would trade barely above $10, which is misleading to majority of the individual stock traders who don't understand how to value a company. did you know some people think goog is bigger than apple in market cap just because the stock price is higher by number?
what I meant by scalping the stock was to ask whether you were trading it with a long bias willing to hold the stock but riding the wave up and down on the trends. if you are doing so, then the current prices will allow that much easier as opposed to if less shares were on the float it definitely would be more volatile.
again I am not so concerned about short term volatility any longer as the stock will be net to upside in the long term. that I cannot guarantee but can stick around to support my belief and confidence. Something that Ohno cannot do as I said before his time is limited. It is already 40% higher in the last 6 months and yet he taunts me on a 15 cent price difference.
its like telling a high net worth individual who is worth 900mm that he is not a billionaire.
back to our discussion, value is based off what the majority perceive something to be worth. Gold and silver have value and fluctuate in pricing everyday based on several factors such as supply and demand. as we all know stock price is also based off supply and demand dictated by perceived value. as more funds hold the shares, and other want in on the action, the price goes up. the market's inefficiencies is what causes a stock to be overpriced and underpriced.
At this time, there are two reason why the stock is not $3.00.
there is an oversupply of shares at a value for which some funds cannot trade. If you have a broker account for instance at a major firm like Morgan Stanley or GS, they will charge you a per transaction fee per 1000 lots of shares. These are not discount brokers we're talking about. A high net worth individual managed account with self directed capabilities will charge an average of 2% of assets or per transaction fee unlike discount brokers. purchasing shares of jamba in 10k blocks will cost upward of $500 to do that transaction. Some mutual funds who would be holding this stock would probably hold it at $3.00 or $15.00. the other reason is it is not marginable
tell me how long you've held jamba stock, and whether you haven't traded it in some time. Seems you like it cheaper so you can scalp it with most of the retail investors. if you care about value you would know that reverse splitting doesn't affect it, and it is more about pricing the stock to reflect its true value.