Ah, you see the game. That's the problem with reverse splits, they don't reduce the authorized accordingly. I'm amazed they reduced the authorized at all.
Unless this is one of the rare exceptions, the day this reverses, look to see heavy dilution. Dilute 100,000 shares at .02 nets 2K, but start diluting the SAME 100,000 shares at 4 or 5 dollars, you will get a lot more than 2K.Even if they only get 500 shares off at $4 they are ahead of the game. Of course, the stock will fall fast but they will still net much more. That's why they do it.
Unfortunately, I am still stuck with 40,000 shares...excuse me, 133 shares of post-split stock.
Live and learn.
TG |
