SandRidge Energy, Inc. (fka SDOCQ)

[lonewollf]

Do you think it would be in SDOC's best interest to do a 'reverse split' in such a fashion that these institutions could buy back in?

Smilin answered pretty well.. but a more direct answer would be:

NOT at this time.

There are yes reasons, and no reasons. Eventually, perhaps.

Right now, while oil and gas are the flavor of the year shorts, NO. While there is any threat at all of BK.. NO.
The OTC actually protects the stock (somewhat) from the largest pool of shorters, as MOST brokerages have very hefty capital reserve requirements to short low price stocks (if they allow it at all. Mine requires $2 cash reserve PER SHARE to short a sub dollar stock) This of course does not stop the big boys who can afford to naked short, but it severely limits the pool of players. If the pps is much higher, any schmuck with a few grand reserve could join the frenzy

Right now, with BK an actual threat, and oil prices generally below profitable levels, all a RS would do is give the average joe short more rope to try and hang the company with. If they RS to get the share price up, Joe short and all his lemming flavor of the short friends will simply gang up and slap it back down.

SO: until the price of oil recovers, and the debt negotiations are out of the way and in the rear view, and the company can provide a clear path forward, it is not in their best interest to RS. Once those parameters are met, then it may be something they would consider if it is still necessary.