I am waiting to see what happens after the split. My guess (I said guess) is that they have found someone to put a private placement, or a company to merge with them. The merger or private placement would cause them either to have too many shares or, they want the total outstanding to remain the way it is. By implementing a revese split, total outstanding is reduced to 25% of current, allowing a private placement to be made (or merger at similar price). My guess is that they want to retain control of the company (51%) and by doing a reverse, this somehow makes all the ducks line up in a row.
No ceo wants to do a reverse split. I only see this happen when it is the last possible option to get the means to an end.
Look at it this way...obviously nothing was going to happen in the present situation, so basically the shares had become worthless. Now, perhaps , the company has a fighting chance at succeeding.
Anyone holding now, want to see their shares increase in the future.
Obviously news of a reverse split can only stress anyone out.
I'm doing my best to see if the chance for this one to climb out of a rut , is better than ending up in a permanent grave.
My guess (my guess) is that in the near short term, the reverse split will happen. after the split, many will sell at a loss. Some because they are just fed up. A few (a few) because the angry posts here, and on yahoo, and aol, will cause them to believe "the sky is falling". others will need cash to buy into some other opportunity they find. (I have had the unfortunate luck of coming accross golden opportunities myself , with no available cash left, I had to make the decision to dump shares in other companies that had stagnated, to buy in the new company. I hated to sell at the depressed price, but I needed the cash)
That happens.
I still watch those stocks. It's all part of the game. I don't know most of you from Adam, but I tend to avoid yelling doom and gloom. Usually if I feel a stock is questionable, I post a few questions, that I know that answering the questions will lead the people down the path to the truth. I don't feel I have the right to tell someone they are making a mistake unless the PM me outright and ask me for my input. Even then I am hesitent.
AGTI. I am sitting , watching, waiting, and thinking.
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