I must say that last post, if accurate, is the most disturbing one that I've seen in a while.
If you want to see what a one-for-ten "share consolidation" (a more cozy sounding euphemism for the dreaded reverse-split) typically looks like, check out the story of Advanced NMR (ANMR). It was trading at $.25 (sound familiar?) when it was consolidated with its subsidiary Advanced Mamography (MAMO) to form Caprius (CAPR) several months ago. As part of the restructuring, ANMR underwent a one-for-ten "consolidation" (sigh) after which the price per share was $2.50. Following the reverse-split the stock immediately went into freefall, bottoming out at around $.70 (pre-split share value = $.07). It has never even come close to its pre-split value and is now struggling to stay above $1.00 (current bid is $1.0625). So if you were invested in ANMR at $.25, your investment today is worth about $.11.
The point of this story is that the above scenario is, with very few exceptions, TYPICAL of reverse-splits. Since lot of companies continue to do it under the guise of trying to "maintain and secure the NASDAQ listing" even though these attempts routinely fail to sustain the necessary price, someone must be benefitting from this maneuver. Clearly, it is not the shareholder.
If Tracer strikes oil and/or acquires producing properties, the price will go up whether or not it is listed. If it undergoes a reverse split, it is virtually guaranteed to go south.
So if the issue comes to a vote, just say no.
HT |
