I have to agree with all the recent statements made here. The idea of a reverse split , at first, is like a dose of ipicac.
I went through a 1 for 15 reverse with XCL and didn't like it one bit. Company gave all the same reasons. My 1000 shares became 100 and all of the same concerns expressed here where stated on the AOL board. "Stock will plummet", "Won't help one bit", "Liars". After the split the stock has continued to trade in the same range , taking the ratio into account. And has even traded higher. XCL is still AMEX listed and has some excellent prospects for the future.
As I have said before I am long Tracer and I feel if they can ever get the bit in the right spot they will indeed succeed.
I intend to vote FOR the consolidation.
That said I think it should be noted that the insiders hold very few shares. This means that the board does not hold the future of the consolidation in their hands. We do. The insiders cannot railroad the vote through. That is why all stockholders must vote FOR this ,as painful as it might be.
Another point to consider. We as investors tend to be overly and sometimes justly critical about the bottom line. We forget that there are people behind the facade of the the stock , Nasdaq listing, and web page. These people hold stock in the same company and it is in their best interest for the company to perform. Not to languish. A wildcat oil company is and always has been a longshot investment, for every Jed Clampit out there, there are thousands of losers. I don't intend to preach. My point is that they are a lot closer to the day to day activitys of the company and their opinion should be taken seriously. They have every bit as much at stake ,some have more. They have jobs to lose.
Some might like to think "what the hell if it goes to the BB ", it is a petulant attitude to take. The loss of the NASDAQ listing will help no one and the delisting will hurt everyone. I think that some of this attitude stems from the disappointment that they won't make the killing on the stock that they thought they would. So the stock has to go from $1.50 to $3 ,instead of .30, to make 100%. I think that's possible with the fewer shares and higher volatility.
Give Tracer a call and talk to them about it. It might clear up your questions.
Maybe we should take a poll of shares held here.
Best to all
Jim |
