My guess on the R/S was purely to increase share price by a factor of 20, I really do think they want this trading in the dollar plus range ASAP to reflect respect as a competing player in the tech business, as you said they could always retire shares, but that won't have the same immediate effect as an R/S. Just look at some of the other flat screen stocks out there. In order to compete they need to at least have a share price that would be respectful for a high tech start up company.
Don't forget the Chinese see things from a different perspective, JMO
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