Kraig Biocraft Laboratories Inc (KBLB)

[jazz710]

I think you've hit on a critical distinction that most folks realize but that cant' be overstated.

At the point of a reverse split, it is cost neutral. 100 pennies = 1 dollar bill = 4 quarters = etc.

Reverse Splits should NOT be used to artificially prop up a PPS. Without sufficient pressure to raise the share price AFTER the split (at which point shares will be more 'expensive' to new buyers), they can fall right back down, and severely devalue the company.

Reverse Splits can be useful when a company makes a substantial move from one phase (like a developmental stage) to a more profitable, stable phase (like a mass production stage). If profits are coming in and the company continues to makes strides post-split, it's certainly not a RULE that the price will plummet.

Long Story Short: Don't do a R/S to get to a higher PPS. Use a R/S to consolidate shares on the rise and to move from a small fish in a big pond, to a bigger fish in a smaller pond.