Greg, Well, we can say that Cytel didn't drop straight away even though all investors, being reverse split opponents, KNOW that it is going back to the original pre-reverse-split price and one seventh the pre-reverse-split market capitalisation. You'd think they would have all bailed out. Here is a chance for reverse split opponents to make heaps by racing over and shorting it.
As soon as the Cytel quarterly report came out a few days ago, crunch, there was a drop, which is shown on the price graph, days after the reverse split was done. So now we have confounding fundamental variables entering the picture and causal relationships will be hard to deduce.
So all I see with the Cytel reverse split is a struggling biotech, with a long trend line downwards and no evidence that a reverse split causes doom. So as you say, I'm not convinced. They have extremely low volume too!
So I'll act on my beliefs, you act on yours and we'll all be happy.
Fortunately, Techniclone's success in treating lymphoma shouldn't be slowed by the share price, whether it is $10 or 10 cents. That just affects the financial returns to existing shareholders.
Maurice |
