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Re: onlyme post# 30645

Tuesday, 10/28/2014 11:20:55 AM

Tuesday, October 28, 2014 11:20:55 AM

Post# of 33394
In a reverse split the value of your stake is the same - you simply own less shares that are now worth more money. That is not the issue.

The problem is this:

1. A large percentage of companies that execute reverse splits will continue trading lower after the split due to underlying negative fundamentals.

2. Additional authorized shares will only dilute the stock price further. Circ needs to pay YA Global and then pay management salaries and bonuses since payroll paid by cash is restricted by YA Global.