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.
Microcap & Penny Stocks : TSIG.com TIGI (formerly TSIG) -- Ignore unavailable to you. Want to Upgrade?


To: Bald Eagle who wrote (25501)4/15/1999 2:57:00 PM
From: Sam LBI nj  Read Replies (1) | Respond to of 44908
 
they say the only way to offset a reverse split is to announce a huge money deal just before or after....i say if the news is so huge it can offset a reverse split you wouldnt need one in the first place....besides i talked to Marty yesterday and he said there was no way that they will do a reverse and he got that from Gordo....
Sam.com



To: Bald Eagle who wrote (25501)4/15/1999 3:25:00 PM
From: REW  Read Replies (6) | Respond to of 44908
 
An example of a positive reverse as it was explained to me.

Let us say the stock is at $4 and a beneficial major strategic investor shows up, like MSFT (example). They say they want to take a large position in the company for, lets say, $5 (yes they might pay a premium). They happen to know the stock will go up a lot. They also state they want us on the NASDAQ and will put us there but they want the stock to enter at $12. That would require a 1-3 split.

Would you agree to it? I would. A lot of money in the bank, on the NASDAQ, and a major beneficial association.

The contracts and contacts to be done with the major investor would be cause enough for stock to rise nicely. Now TSIG.com already has a positive flow and is growing at this point so the additional support of the major investor would cause a catapult in the stock as it did several things:

1. Come to the evaluations offered by the NASDAQ

2. generate the additional anticipated valuation due to the association with the major internet software company

3. increase the earnings growth due the additional business attained both from the investor and it's influence.

Now what happens when the stock appreciates to a certain point? It splits 2-1. The investors get shares back but enjoy a higher value beyond where they would have been without the support of the investing partner.

I personally like it but there will always be those that won't. Everyone to their own decisions.

Bob



To: Bald Eagle who wrote (25501)4/15/1999 4:53:00 PM
From: findstock  Read Replies (1) | Respond to of 44908
 
Just out of curiosity, can you give us an example where a reverse split has turned out to be financially beneficial to the common shareholders, because I've never seen it happen.

Well actually there is an example now baldie its PNLK...they did a reverse...



To: Bald Eagle who wrote (25501)4/15/1999 9:42:00 PM
From: JWC  Read Replies (1) | Respond to of 44908
 
>Just out of curiosity, can you give us an example where a reverse split has turned out to be financially beneficial to the common shareholders, because I've never seen it happen.<

I agree with you baldy 100%. I am sitting on 20 useless shares of a company now that did a 10 > 1 reverse split. Jeff