Eric,
I dont know why you think reverse split is bad? Ofcourse one will
have less shares but the price of share will go up in an equal amout.
So,this should be a wash. I don't know what's your reasoning behind
your thinking as to the price going down,just because of the reverse
split. It may go down or up depending on the performance of the
company,if anything.
As for me, i see a few good things happening because of the reverse
split,and they are:-
1) Less outstanding shares,therefore the stock will have a higher
propensity to react positively or negatively,depending on the
performance of the company.
2) Redemption from the lowly 'penny stock' status, and hopefully
this will attract some major investors and money managers,thereby
increased interest and coverage. As you know major money managers
and investors usually always do not touch penny stocks,no matter
what.
3) Reverse split will most likely avoid CHRB from being delisted by
NASDAQ,if one of the pending proposals are adopted.
Mind you I am not advicing you either to sell or hold the stock, but
merely expressing my opinion about the reverse split.If any one
has a different opinion about reverse split,kindly post it. |
