I'm afraid I'm going to agree with fuddle's synopsis...After a reverse split, 99% of the time stocks and especially penny stocks, go down before they go up...
>>>When a company make a reverse split, it is in general because the price of share is under 0.50 and overvalued.<<<
IMO...Wrong... It's because they are over diluted, they have sucked out the last penny they can get from investors and there is no hope in 'ell to further increase share values...Therefore, there is no future hope for the company to raise investment capital without further share dilution casing a decrease in share values...
Watch, within six months of the reverse split, I can pretty well guarantee that they are going to start the printing press's again...If you've played the pennies for any length of time, you will see this happen over and over again...
Prime example LAB/vse...reversed 5 for 1 and now has a new symbol RIL/vse ... Check out the NR's for the past six months on RIL and you will see what I mean...
Check out how much paper DML/vse is issued in the past 1.5 years... They have no choice but to do a rollback in order to start the printing press's again, in order to raise more capital, so they can pump a new story (i.e. gas/oil play) in order to gain the ability to give themselves fat paycheques...and so the circle jerk turns, over and over again...
In the case of SBX, how do you think they are going to get the money in order to help finance all this expansion that cd plus.com want to do...After all is said and done, SBX will still only own 8.5% of the company... Ever wonder why most of SBX's news releases real play up how great cdplus.com is and how they play down the eventual percentage ownership in the public company...
Another question to take into consideration...
Who owns the other 71.5%????.... I'll give u 3 guess's and the 1st 2 don't count...<ggg>...
One other thing...They gotta issue 250mm shares for 8.5%...Roll that back also and the new company will still have more than 50mm shares outstanding...
They are publishing all the gross sales, massive expansion plans and acquisitons for cdplus.com and yet we still don't know what the net figures are...
Where's the value???...
...ed |
