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Thread: Will it POP or DROP???

  1. #1
    Sundevil is offline
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    Will it POP or DROP???

    Only 10 days away from the big meeting....if both the R/S and Dilution measures pass, do you expect a POP or a DROP in PPS? (On Dec 19th)

  2. #2
    Siriusowner is offline
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    Quote Originally Posted by Sundevil View Post
    Only 10 days away from the big meeting....if both the R/S and Dilution measures pass, do you expect a POP or a DROP in PPS? (On Dec 19th)
    Not right away. The R/S will attract the shorts though so hold on to your pants and do not bend over - do not sell your shares, yet... you lost 95% already, what is the other 5% ? RISK IT -... The dilution will not affect until they actually issue the shares... it may be right away or it may be until the FEB Debt is due.

  3. #3
    Newman is offline
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    Siriusowner: That is very true.

    If Sirius shareholders authorize the additional shares and the RS.... NOTHING HAPPENS!!

    The additional shares do not automatically hit the market. The company must ISSUE the shares before they become an issue, and they will not issue all of them or even at the same time.

    The RS only happens if the board decides to enact it. According to Mel, this will only happen to satisfy listing requirements. This will not be an issue until next August at the earliest, and longer if NASD decides to extend their rule suspension.

    What it DOES do is give the company OPTIONS, and having those options MIGHT be considered a plus for the street. Who knows.

  4. #4
    APEXSPORTS is offline
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    well at least if we dillute we drop from .16 to .10?? who cares at this point..

  5. #5
    Newman is offline
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    I doubt it apex. It may drop, but even then, like you said, who cares?

    At this point, as I have said elsewhere, the stock is not priced for bankruptcy: it is priced for REORGANIZATION, which in most cases, leaves the shareholder with NOTHING. Sirius trades below its intangible book value, which means the company is undervalued. The problem is, even though it is technically undervalued, a reorganization kills the common shareholder most of the time. The debt markets have remained stong, and Sirius debt is still trading strongly, meaning that the ones who trade in debt really do not feel that Sirius debt is a bad deal... Just the common stock.

  6. #6
    Sundevil is offline
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    Historically Speaking

    Have any of you experienced owning a stock that has approved a R/S or Dilution? When these additional options became available, did it give shareholders more faith and drive PPS up, or create fear and drive it down before either option actually took effect?

    I'm just concerned (like most of you) of what will take place over the next two weeks. I obviously don't want to be left with a big goose egg. But if history dictates a slight POP, then I may dump a few more bucks into it on that gamble.

  7. #7
    Newman is offline
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    I have been invested in one company that has approved, and then enacted, a reverse split.

    Initially upon approval, the stock popped. It then settled back down before the RS happened. Upon the RS, it popped again and stayed there for a short while, before plunging right back to where it came from.

  8. #8
    Sundevil is offline
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    Good to know...Thanks Newman..

  9. Ad Fairy Senior Member

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