Petro Rio S.A. ADR fka HRPTY

[Northsun0]

A small float can also work against shareholders in a company especially one as small as HRT's float would have been if the 30 to R/S took place. Any perceived bad news coming out Namibian off shore drilling or Solimoes Basin drilling could really dry up the bidding on HRT shares, unless a shareholder was willing to almost give away his or her shares. I actually saw that happen to a stock I once owned and fortunately sold before it's R/S took place the shares tanked big time on news released by the company.

Forward splits or stock dividends reduces the cost base for each share, which has proven very rewarding to shareholders. Reverse splits of course increases the cost base of each share for shareholders who bought shares prior to the R/S. Historically in most cases proven not in the best interest of shareholders.

I sold the HRT shares I received for my UNX shares for $8.18 a share, whoever bought my shares if he or she still holds the shares in order for that individual to break even the new HRT shares have to go up to $81.80 if it was a 30 to 1 R/S as proposed by the management of HRT the shares would have to go up to $245.40.

The company that ogo mentions in his post TKM.O that is currently doing well has been in operation since 1997 it has been as high as $139 adjusted for R/S even though it has gone up about $11 since last Thursday to $26.15 it has along ways to go before any long term shareholders in the company break even.

My many years in the stock market is what made me so uptight about HRT's R/S proposal ( remember it was a 60 to 1 R/S split originally planned for HRT GDS shares ). I felt strongly a R/S of 30 to 1 would be very bad for shareholders. So I did everything I could to prevent that from happening, in spite of being told it was a waste of time by posters on SH and IH. I have accepted the 10 for 1 R/S even though I feel a 5 for 1 would have been in the best interests of HRT shareholders.