Well we know the RS won't be in the low ratio of 1/2 or even 1/5 for what would be the point of taking the SP price from say .17 to .85 -- with a NASDAQ requirement of $1 minimum?
I think it's safe to assume that in order to get the stock price comfortably over $1 dollar to stay on the NASDAQ, and at the current trending of the SP, the RS will have to be something at least 1 for 10.
At .17 per share a 1/10 RS would bring it to $1.70. That may or not be a good enough buffer to keep it over $1 should any negative news or sentiment continue here since there is no substitute for product demand/sales/profit, and that's what investors need proof of.
My thinking is that the RS may likely be closer to the high ratio of 1/25, which at .17 would bring the share price to $4.25, possibly more attractive from an institutional stand point than too near the $1 threshold, again assuming institutional investors can see something real happening here in terms of sales/profit.
The recent JV looks interesting and so does the article/interview touting it by rise51's instablog, who are long the stock.
But I will wait to see what things look like when the reverse split is done. I never buy a stock that will be enacting a RS due to unfavorable market reception of the product as well as management mistakes that diluted and cratered the SP in the first place.
SKLN really hosed their shareholders with the terribly managed convertibles sale combined with poor sales that led to the death spiral of the stock. People that were in at multiple dollars and who may still be holding here in the pennies/teens, will now see their holdings diminish by a reverse multiple.
Sure in theory, despite the far fewer shares one has after the RS, the SP should still be the same post RS. But it also means that company success has to be that much greater for pre-RS holders who saw their SP go from dollars to cents to realize break even, let alone the kind of stellar profit that the rise51's article was touting.
Those who get in at what proves to be the relative low either before or after the RS, and if SKLN does gain success, those investors will see gains. But the rise51's article is really for them. Not for those who got hosed and already sold at a loss or are still holding massive red.
I'm not saying SKLN will not succeed. I hope it does, especially for those in the red. Good luck.
“Mankind was my business. The common welfare was my business; charity, mercy, forbearance, benevolence, were all my business. The dealings of my trade were but a drop of water in the comprehensive ocean of my business!"
- Marley's Ghost
Charles Dickens
