Baron Capital Enterprise Inc (BCAP)

[mdimport]

I read the filings going all the way back to the last R/S in 2006 and even a little before that time.

There used to be 27M shares outstanding pre-R/S.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=4652181

A 100:1 R/S was performed on that 27M taking the O/S down to 270k shares.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=4757886

If Tim Howard were going to truly reset the stock back to 2006 times he'd have effected a 15,000 : 1 R/S to get roughly the same initial O/S post-R/S.

The R/S itself is a math function. Anyone who owns shares can average down, and later take a tax loss on the worthless stock to claim against their year end gains. From a trading perspective No Bid represents a larger loss of capital than a R/S simply due to the lack of trading (dead money stock).

Over the last few years when I was a shareholder, I came to understand that share structures in the 1B+ range are no good for OTC stocks. They're too easily manipulated by someone selling 1,000 shares into the Bid to take the price down 50% from $0.0002 to $0.0001, and cause a panic dump from hyper-traders on the price change who then blamed the company instead of the real culprits.

Bottom line from my perspective is that its not healthy for any company to raise capital on a $0.0001 basis, it harms common shareholders tremendously, and only helps flippers and P&D crews who lure in unwitting shareholders before shafting them.

Post-split management probably has a plan for what they'd like to see with respect to the share structure. As for me, I'd be happy with 27M O/S here post-split and post-recapitalization which basically resets the stock to 2006, and $0.15 / share which is a $4M market cap. I don't know if that's what Tim Howard has in mind, but like you and everyone else I'll find out.