SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Westrend Natural Gas - I.D.E. Hot Stock
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Leigh McBain who wrote (1737)12/10/1998 11:30:00 PM
From: Chuck Rubin  Read Replies (2) of 2011
 
Leigh,
If there isn't a real good reason and momentum of the share price kept up...these things tend to dribble back down to pre-split prices and you have fewer shares at the same price you began.
1 for 15 is a very high reverse ratio, leaving many of us with a lot fewer shares.
Can you give us an idea why it might be worth the while for investors to go thru this?
Forward splits are usually very good with the price so high, it makes it worth it for investors to go thru the split, but reverse splits are
an uphill battle for investors most of the time....Not only do you have to hope the pos-split shares stay up, but you have to hope the Company doesn't begin a financing rampage, where the number of shares begins to ramp up again and the shares dilute the price again.
Also, many investors tend to shun a stock for quite a while while it goes thru the reverse split process and then watch the price to see if it'll go down far enuf to take advantage.....So this only gives the advantage to new investors while the pre-split investor has the disadvantage and could suffer the consequences I formerly mentioned.
Also, I don't understand, if they are going to sell most of their assests INCLUDING TAYLOR, what do they have?? Taylor also seems to be the jewel of the crown for the Company and they want to unload it?
Of course I don't have what they are proposing, but it sounds fairly dim to me on the surface.

Chuckr
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News