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Microcap & Penny Stocks : DCTC - DCI Telecommunications

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To: Pr-Ac Man who wrote (3364)1/16/1998 12:17:00 PM
From: David Bartkowski  Read Replies (1) of 4489
 
PA,
Don't know the history, but do know about reverse splits. The difference between a reverse split and a buyback is huge! With a buyback, profits are spread over fewer shares and you still own the same amount of shares. Which will give you more profits for the same number of shares. With a reverse, you own half the amount of shares and profits are again spread out over the fewer number. But, the stock price is adjusted with the reverse! So, it would appear to not have any impact on the price or value. But, what ends off happening is it provides the stock price more room to drop! And it usually does!

DAVE
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