>Reverse split is that bad?
eugene.
pretty damn bad. while i won't profess to be the authority on anything, i've only known one instance in which it worked (cf. comverse technology). i'm sure a number of other examples exist, however, it's general investment knowledge that a reverse split is a bad sign.
in my opinion, the reverse split is just management's attempt to prop up the price. get isramco noticed, make it appear like a more attractive buy, give it some respect, whatever. it's not the mark of a solid, dynamically growing outfit. and believe me, there are plenty out there.
of course, fundamentally, a reverse split does nothing to the balance sheet, just like a 'normal' split (e.g., 2 for 1).
once again, my opinion. i just believe there are so many better places to put your hard-earned coin.
-chris. |
