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Technology Stocks : Concurrent Computer (CCUR)
CCUR 2,5000.0%Nov 7 9:30 AM EST

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To: Rock who wrote (20969)4/28/2008 10:28:05 AM
From: The Ox   of 21142
 
The problem is execution, not the reverse split. Simply having a higher stock price doesn't do anything for the company, as its simply a matter of ten dimes equals a dollar. Another way to put it is that the company has 30 cents per share in cash but will end up with $3/share after the reverse split.

This company has failed to generate revenue, so the stock price falls (naturally). The key is turning around both the top and bottom lines.

The reverse split is simply an accounting measure, imo. An inability to find markets for their products over the past few years has been the problem. This is not going to be affected by a reverse split. Being profitable and generating new revenue sources are what will make the final determinations for the stock. This has been the company's failure in the past, so its easy to speculate that this will continue in the future.

EDIT: as to reverse splits, NT did one a few years back and for the first 3 or 4 months, the stock went up about 50%. Since then, it has fallen from 31 to 8! Company problems are not solved by reverse splits but by the ability of the company to turnaround the issues which weigh heavily on the business.
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