OCA (12)
Question
by: hasta_la_vista_oca 08/31/05 10:45 pm
Msg: 37595 of 37781
<>
You really ought to take a business course before proposing deals. Shares of a publically traded U.S. corporation are not assessable. That means you can't call up the stockholders and tell them to send in $1 per share. It can't happen.
Now do you understand why everybody is throwing up all over your financial analysis of OCA? You have as much chance of understanding OCA as a frog sitting on a lilypad does of understanding the nature of the universe.
Response
by: chfriend03 09/01/05 12:35 am
Msg: 37601 of 37781
You are really childish! But I do not take your offenses seriously.
Issuing stock warrants to existing share holders is easy. It is like distributing dividend! OCA board can authorize it, or in some cases, this may need majority approval by shareholders (and it will be approved as such plan will give an immediate boost to stock price).
Stock warrants are the rights to purchase the shares (usually at below market price). More than 98-99% investors will excercise them.
These who do not have money to excercise can sell part of their shares in advance to raise the fund. As I said above, an announcement of such plan (of stock warrant issuance) would bring up the stock price by a good percentage. That is because most investors shy away from OCA because of the liquidity problem which can be cured by stock warrants' issue.
This has happened to another company that trades in US market. The company lined up a strategic investor to take up the warrants that were not excercised by (1-2% of) shareholders. Its stock price rose quickly right after the announcement of the board decision.
by: hasta_la_vista_oca 08/31/05 10:45 pm
Msg: 37595 of 37781
<
You really ought to take a business course before proposing deals. Shares of a publically traded U.S. corporation are not assessable. That means you can't call up the stockholders and tell them to send in $1 per share. It can't happen.
Now do you understand why everybody is throwing up all over your financial analysis of OCA? You have as much chance of understanding OCA as a frog sitting on a lilypad does of understanding the nature of the universe.
Response
by: chfriend03 09/01/05 12:35 am
Msg: 37601 of 37781
You are really childish! But I do not take your offenses seriously.
Issuing stock warrants to existing share holders is easy. It is like distributing dividend! OCA board can authorize it, or in some cases, this may need majority approval by shareholders (and it will be approved as such plan will give an immediate boost to stock price).
Stock warrants are the rights to purchase the shares (usually at below market price). More than 98-99% investors will excercise them.
These who do not have money to excercise can sell part of their shares in advance to raise the fund. As I said above, an announcement of such plan (of stock warrant issuance) would bring up the stock price by a good percentage. That is because most investors shy away from OCA because of the liquidity problem which can be cured by stock warrants' issue.
This has happened to another company that trades in US market. The company lined up a strategic investor to take up the warrants that were not excercised by (1-2% of) shareholders. Its stock price rose quickly right after the announcement of the board decision.
posted by jajabin at 3:53 PM
0 Comments:
Post a Comment
<< Home