You continue to allude to the length of time leading up to the RS. There's no difference between a RS occurring tomorrow, or one occurring in a few months. If the market perceives it's going to be cheaper in the future, why buy at elevated prices?
It crashed literally the hour that the PR came out with the CEO tipping his hand about 'a potential reverse split.'
I agree with you: if they do announce some sort of change to the RS terms, it could help this out a bit. A change of ratio doesn't mean anything to me as I'm a value investor, but I know the market does respond to rinky-dink BS like a change in ratio. To me a 1M:1 RS is the same thing a 10:1 RS - your slice of the pie is exactly the same, it's just the type of trader or investor who shows up because of the price level.
I don't think the cash position will really effect their decision. I saw the email with Ed stating that they will likely have cash to cover some of the maturing debt - but I still believe it wouldn't be in the company's best interest to actually pay it with cash. His email isn't even committing to using any on hand cash to pay debt, he said that it's possible. If they DID pay with their on-hand cash, I'd begin to believe that they don't really want to be a penny-stock/OTC, and might want to really up-list. I'll believe it when I see it, though.
Nope, still not a paid basher. Just here helping to provide clarity and understanding to complex capital structures.
