Reverse Split Opinion
Email to ITR Board of Directors sent today.
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ITR Board of Directors,
I am writing to voice my opinion about your proposed reverse split of common shares.
My proxy vote materials indicate you board of directors support this reverse split based "...upon sound, professional advice...." from institutional bankers and your legal counsel.
You are to immediately fire your institutional banker and to immediately fire your legal counsel. This "sound" and "professional" advice given to you is amongst the worst of advice given to many companies. A very large majority of companies, seventy to eighty percent, who perform a reverse split of common shares, suffer a serious decline in market capitalization after a reverse split, often as much as a fifty percent loss in company value.
This "institutional banker" providing advice is Cornell Capital, yes?
Cornell, despite a name change, is known for years as a destructive, if not toxic lender. Your announcement of funding by Cornell was followed by a sell-off of shares by the public and a serious decline in your per share price. Those of us who are experienced traders and experienced investors know Cornell is ALWAYS bad news. Cornell will provide you advice which will only benefit Cornell.
Legal counsel, lawyers are a dime-a-dozen and lawyers do not know diddly-squat about stock market forces and mechanisms. Lawyers are just such, lawyers, not professional market advisors.
Smartest move you can make, right now, is to payoff Cornell then announce this. Cornell is ALWAYS bad news. Your funding through Cornell "scared" away share holders and potential share holders.
Never announce to the public you are following market advice from a lawyer. As you know, public opinion of lawyers rates right in there with used car salespersons and politicians; nobody trusts lawyers.
I am sure these boys advising you to perform a reverse split have told you this will attract serious high-dollar investors. This is mule manure advice fit only for one of your digesters. Serious investors and serious traders view a reverse split only as a desperate move by a company facing an equally desperate financial condition. You have observed what simply announcing a reverse split has done to share value. I would think this to be hint enough a reverse split is viewed with disfavor by seasoned investors and traders. Actually performing a reverse split will serve only to destroy your company value.
A reverse split is a tool of two-bit scam companies.
I do not believe your company is a two-bit scam company which is why I hold right at a million shares in your company. However, I do believe you, of your board of directors, do not have single clue about how the stock markets work and do not have a single clue how to attract new investors; you are engineers and scientists, not stock market professionals.
Improving company performance and increasing company revenue is the only viable method to increase share value and company worth. Show us the bucks, we will show you ours and we, of the public, have a lot of bucks to invest.
My background is twenty-seven years of successful market investing and high risk market day trading. I am well known and my advice is frequently sought by those who know me.
I am writing to warn you funding by Cornell and this proposed reverse split, both are destroying your market value and may, ultimately, destroy your company through loss of willing investors, both current and future. With a decrease of or loss of capital investment by the public, you might as well toss your company into one of your digesters; your company will become another cow crap penny stock company of no real worth.
I am also warning you should this reverse spilt be enacted, I will immediately dump my million shares at whatever price possible to cut my losses.
My advice is to not plop a handful of cow crap into your investors' hands.
Payoff Cornell, fire your institutional banker and fire your legal counsel.
Smarten up and start listening to your investing public.
Regards,
Dr. Kiralynne Schilitubi
Professor of English
Choctaw Nation
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