I think that hypothetically if it did happen, it wouldn't happen until we were closer to the the divvy date for two reasons:
1) As we get closer to that date, we're going to see the PPS rise organically as more people swallow shares to get in on the divvy. The higher the PPS, the smaller the R/S would be. This is key because the only reason he would do an R/S would be to increase the PPS enough to be able to acquire another company capable of increasing shareholder value or at least creating stability so the PPS doesn't tank and cause him to play the mutliple R/S game as someone mentioned earlier. The higher the PPS prior to an R/S, the lower the R/S ratio needed, and the less shares he would need to offer a lender as collateral.
2) An R/S closer to the divvy date would allow him to issue less divvy shares. We don't know for sure what the O/S or A/S would be... we're only speculating at this point officially, but less divvy shares = less O/S = higher PPS for spin off.
An R/S doesn't necessarily mean that we're all gonna crash and burn. I get that it has strong ties to investor confidence and it sends a signal that the company is struggling and everyone needs to GTFO. Especially in the OTC... where it's virtually synonymous with a stock's death sentence. But strictly speaking by definition, it doesn't affect the equity of what you're currently holding. It just merges your shares together. Less shares... higher PPS... same total equity. It's the panic selling that drives the price down, and that's typically before the R/S. The only thing it will inarguably affect, whether done correctly or not, is your total equity going forward due to a smaller hoard and adding a penny to the PPS not having as great of an effect.
Like DJK said, the change in phrasing by Henry in his last CC where he explicitly stated that it's a future possibility instead of flat out saying "no" like he used to is enough to cause concerns. A lot of us have dumped a lot of our earnings into this stock when it was in trips expressly because of the potential in this company coupled with his stated guarantee that a R/S was not going to happen. Having that no longer be a guarantee understandably is going to create a feeling of unease. Regardless, there is just too much we don't know right now to be able to speculate any further on it. Time will tell. We just have to wait and see.
Just my two cents... heh...
