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Don't worry, i'm also hoping the same happens. I can't see any amazing news or breakthroughs coming from Elon soon. Maybe towards the conclusion of the year but for now it will be a bumpy ride down.
Also, I always wanted to know why the guys at Tesla always make thousands of transactions daily with their own shares. They buy and sell the same shares all day everyday......could this be manipulation of prices? https://research.tradeking.com/research/quotes/insiders.asp?mcsymbol=TSLA
I have 2.3 m that just turn to profit today (that 60% dead cat bounce killed me) so hoping for a slow drift down from here and no bounce tomorrow.
Ah yeah I just spotted it thanks. See I'm high after all, well these space cookies are wearing off. Edibles are a disaster in the afternoon I swear. Anyways have a good day and may you prosper during this Tesla downturn. It's about time we see a drop. Did you buy a lot of 3sts? I did 7.3m and it went crazy this week. My greed had me dreaming about a $4 per share price correction. I hope I make enough to buy some slaves one day.....bankrupt Tesla fanboys will make great slave labour one day.
Chief. I found the problem. In your comparison grid you use 1275000 and in your calculations you use 1250000. .112x1275000 is 142800.
Great stuff there but whilst it seems to make sense at first, it will be different after the fourth day. In fact as the days progress there will be a difference. The easiest analogy to imagine is this: imagine me and you having each a store that sells apples. You start off with 850 apples that you sell at $21 per apple and I start with 1,250,000 apples that I sell at $0.014 per apple. Each day, the price doubles for 30 days. What will happen to the profit margins in comparison on the 30th day? What I'm saying is that the doubling effect makes more sense with a balancing effect in place. If we go to day four of your calculation and assume the same doubling then yours should be $168 X 850 units which equals $142,800 and mine on the fourth day should be $0.112 X 1,250,000 = 140,000 which is still $2800 less than the post reverse split. This difference makes them not the same because one may have more than the other. Its one of those conundrums, great to discuss. Over time there may be a difference reflected. I don't know if I even make sense anymore I'm high most times lol
Reverse split comparison
1,275,000 units | Day 1 | Day 2 | Day 3
Before split | $0.014 | $0.028 | $0.056
Value | $17,850 | $35,700 | $71,400
--------------------------------------------------------------------
850 units Day 1 | Day 2 | Day 3
After split | $21 | $42 | $84
Value | $17850 | $35700 | $71400
Or should I simplify it some more?
After split is 21 per share not 10
I got it but check your math for 850 units at the consolidated price from your base of 0.014. I did it for you a couple of posts down. No difference in total value so no difference in compounding.
Reverse split comparison
1,275,000 units | Day 1 | Day 2 | Day 3
Before split | $0.014 | $0.028 | $0.056
Value | $17,850 | $35,700 | $71,400
--------------------------------------------------------------------
850 units Day 1 | Day 2 | Day 3
After split | $10 | $20 | $40
Value | $8,500 | $17,000 | $34,000
Here is a simpler break down of the above below:
If you start off on day 1 with 1,250,000 shares valued at $0.014 then the value is actually $17,850. This is derived from multiplying the value of shares by the number of shares like this : 1,250,000 X $0.014 = $17,850
Now on day two when the price doubles you have a new value of $0.028 because $0.014 multiplied by two is equals $0.028. you then take this second day figure and multiply it by your holding of 1,250,000 shares and multiply this by the second day figure of $0.028 and this gives you $35,700.
Day 3 as per the example where I started that the price rises 100% per day for three days, the price once again doubles, meaning that we multiply $0.028 by two which equals $0.056. we then multiply $0.056 by your holdings of 1,250,000 shares giving us a total of $71,400. Now this calculation example is the scenario pre- reverse split. Now the example calculation below is the scenario post revert split, maning that the 1,250,000 shares are now 850 shares after consolidation. Here is the post reverse split example below breakdown:
Day 1, 850 units at $10 each equals $8,500. This is derived from multiplying it this way: 850 X $10= $8,500
On day two assuming the doubling of the value, the new share price should be $20 per unit because $10 multiplied by two is equals $20. So we multiply the new value of $20 by the consolidated holding of 850 units which equals $17,000.
On day 3 when the price doubles again, we then have a new value derived from doubling $20 by two which equals $40 per unit. We then multiply $40 by the consolidated holding of 850 units which equals $34,000
This as a results means that under the consolidated holding, the security holders gain less than they would before the reverse split. Get it??? Or should I simplify it even more??
Those were just example numbers not actual values. It was to show that the reverse split has a disadvantage in terms of gains accumulated over time. There is a bigger financial gain advantage for someone holding 1 million shares over someone holding 800 shares. The doubling effect is more effective when compounded with a larger holding. My point is that holding 800 consolidated shared that have a higher value per unit is still technically a disadvantage compared to holding a larger volume of shares at a lower value of there is a market crash or correction scenario because any compounding effect is reflected better with larger volume holdings.
0.014 x 1500 = 21
21 x 850 = 17850
Where are you getting the post consolidation numbers from? The math does not look right and on the release granite share an example that comes out even. the underlying pot size is the same whether there are 2 shares or 2 billion shares.
This comparison is based on a 33.33% daily drop in Tesla which equates to a 100% rise in 3sts. It's a what if there was a 100% gain for 3 days scenario and what are the implications of a reverse split?
The recent 3STS split may be a halving of potential gains when looked at from a market crash perspective. Consider the example below where I have compared a pre-reverse split price and post reverse split price based on 1,275,000 units consolidated into 850 units post reverse split. It appears that the holder may be at a disadvantage after the reverse split should market conditions be adverse under the leveraged 3STS security. The gains are lower in terms of value after consolidation and much higher at pre- reverse split.
Reverse split comparison
1,275,000 units | Day 1 | Day 2 | Day 3
Before split | $0.014 | $0.028 | $0.056
Value | $17,850 | $35,700 | $71,400
--------------------------------------------------------------------
850 units Day 1 | Day 2 | Day 3
After split | $10 | $20 | $40
Value | $8,500 | $17,000 | $34,000
There is a reverse split consolidation coming on 17th May. It's a ratio of 1500 : 1 which seems major and kind of ridiculous but from the guidance it seems to be a reaction to the recent sudden downward trend in Tech sector plus there could be a market correction due or Tesla may just suddenly rise to more than 33% in a day meaning a wipe out for holders but either way we will need to observe the changes coming.
https://graniteshares.com/institutional/uk/en-uk/research/3sts-reverse-split-effective-17-may-2021