Aiming to become the global leader in chip-scale photonic solutions by deploying Optical Interposer technology to enable the seamless integration of electronics and photonics for a broad range of vertical market applications

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Message: Re: Regarding the share consolidation (reverse split)

PP,

Help me understand your logic.

"Bottom line, they will require to increase the share float substantially in order to supply the demand if we have what management says we do.  How many shares, who knows, but based on other competing company's listed on the Nasdaq, our curent float of 300 M shares is peanuts, or lets just go for the gusto and go over with the 1.25 M share minimum to start out with.....pure sarcasism on my part".

From my previous experience, "share float" is a metric I use for measuring the volitility potential. This ultimately determines my trading strategy and gives me a foundation for the manipulation levels. In short, you can find this general rule of thumb by just researching "short float".

Example: 

FLOAT                                     Price Range         

Low Float (Less than 5M)          Under $10

Medium Float (5-500M)            $10-100

Large Float (+500M)                Any, Usually $20

To summarize, many intellegent traders size the company based on float. Lower float stocks are very volitile due to the amount of manipulation. For many traders the higher float stocks do not provide enought volitility for the trader's timeframe. Therefore, many common trading patterns, pivot points, indicators, strategies do not really come into play unless we have.... volume. What comes with volume? The mass amount of traders that follow very specific trading patterns; with one side of the extreme being manipulation and the other being HFT (a more sophisticated for of manipulation). 

Can you clarify this:

Bottom line, they will require to increase the share float substantially in order to supply the demand if we have what management says we do.

They will require to increase? I believe that's called share price appreciation. If they wanted to increase this... It would be through another offering. Usually, offerings are announced after really big catalysts that make the share price go up. For example, look at NVAX, MRNA, and NIO to name a few. What happens when they realize a 20-30% day? Offerings. 

I believe that whatever ratio management decides on, most retail shareholders will be disappointed. This is ultimately because of differing timeframes. Management stated that many companies are finished at first production; they sell out. That is not Suresh's goal. That is not the company vision. So unless an investor sees things on the same timeframe as management, there will be conflict. As far as the RS, I see it as a tool. I do not see it as pride, failure, respect, fear, insert-emotion-here. If management is telling me that they need a tool in order to optimize the full potential of growing this company, I understand that. The question is, how far into the future are the looking with the ratio and does my financial timeframe for this investment line up with that?

 

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