Wayne:
Welcome to the world of sleazy NASDAQ trading. This is my 2nd stock that went "Bump In The Night" and, I don't expect to recoup my losses on either one, at least not in the near future. Here is how a reverse split works:
Assume that you bought 20,000 shares at .20 cents which comes to $4,000 bucks less commision fees. At the close of todays market you market worth was $3,100 bucks (Using the bid price).
Now the kicker comes in and announces the 1-20 reverser to his team members. Oh oo, you now have a total of 1,000 shares (20,000/20) and the value of each share based on todays market was (Using the bid price of .155 at the close) is now $3.10 per share (.155 x 20) for a total worth of $3,100 bucks, so in effect you haven't lost any money.
So you ask a simple question. Why do this? It hasn't brought up the net worth of my investment? Ahh, here is the rub old chap. Remember that dirty word MM's, and how they seem to control the bid/ask price of these poorly undervalued OTC stocks? Well, it seems that some companies think that they can get out of the control of MM's by reversing the market shares, increase the value of their stocks and attract big money houses into their fold. But, the truth of the matter is that this dosen't work out in most cases, unless the company has a real good market and product base to attract big money.
Anyway, I hope that TFRY does succeed in this, but time will tell.
Good luck to all
Frank |
