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Re: rbtree post# 101204

Monday, 10/16/2006 6:36:14 PM

Monday, October 16, 2006 6:36:14 PM

Post# of 169276
yes, I was incorrect... please accept my apologies, and here is my amended post.... (bold is my corrections)

according the company....

The ratio of share issuance will use the following formula ($15.00 divided by the Actual Closing Price on October 30, 2006 (x) minus Actual Closing Price on October 30, 2006) (15 / X - X).

a split is a split... and the only way to get the price higher, (not the value) is to reverse split. If they forward split, the price is going to open the next trading day in accordance with the increased number of shares on the market.

if you have 1000 shares, and they 1 for 5, then you have 200 shares at 5 times your cost basis. In the case of a 1 for 5 reverse split.

if you have 1000 shares, and they 5 for 1, then you have 5000 shares at 20% of your cost basis. In the case of a 5 for 1 forward split.

so your money you have in the stock is still the same. and the rub is so is everyone elses. 100 shares of a 2 dollar stock is worth the same as 200 shares of a 1 dollar stock.

and its exactly visa versa if you are short the stock.
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