Stone Energy Corporation (SGY)

[carusso]

Okay, so they probably have to do a 1 for 5 to stay above $3, and their options for institutional investment are much better if they are above $10. If they do a 1 for 20 R/S, shares will be more scarce than now - even after a dilution, so the post R/S shares will allow investors to buy on margin at probably 30% of capital, which will favor investment much more than any share price under $10: under $10 can have 50% or 70% or 100% margin requirement.

I'm trying to say, they know what they are doing in a sophisticated environment for oil and energy investment.

I hate R/S as much as anyone, but I have to say that I've never seen