Richard, paunch,
If indeed this stock has been manipulated, and I have no reason to doubt it, a reverse split would be the absolute worst thing the company could do.
A split, either forward or reverse, does not change the value of the company from a bookkeeping perspective,
HOWEVER,
the perception of a reverse split, even though incorrect, is negative. Other companies have tried this and failed miserably. Universal Ice Blast comes to mind as an excellent example. Shareholders lost their collective azzes when the shorters brought the stock price back to pre-split prices, which is generally the case with reverse splits of penny stocks.
If Dick would like to lose 90% of the present stock value, a 1 for 10 split will likely accomplish exactly that.
IMO, the only thing that would make the reverse split successful would be the release of earthshaking news prior to the reverse split, and then the split would not be necessary.
Reverse splits = Dead Companies
PS. I honestly don't believe the Company would tell you if they were considering it. It would be illegal information, and if true, would likely ignite a selloff. Certainly mine. |
