BB, Dr. B, etc. I believe knowledgeable posters are completely in agreement that a reverse split has no purpose at this point. I cannot imagine not achieving a sufficient share price to move to a major exchange after TLD is received. If I'm wrong about that, something would be seriously wrong with the company. Let's see the data, the Journal, etc. and see where the stock goes, I believe the $5 to $10 range is reasonably certain, if I'm wrong about that, then discussion of a R/S to gain the major exchange could be considered, but if the released results clearly point toward approval in the next year, I cannot see a way we don't go substantially higher.
I believe that we all pay far too much attention to stock price, and far too little on market cap. To me, the major exchanges shouldn't be concerned with stock price at all, it ought to be based on market cap and financial reserves. It's ridiculous that a company with a couple million shares outstanding, but a share price in excess of $4 can get a listing on the Nasdaq with a market cap that's under $10 million, while a company with a market cap over a billion cannot because of the shares they have outstanding. Sure, R/S's can be used to bring share price in line with exchange requirements, but it's wrong for exchanges to push these issues rather than making market cap the key to listing, and retaining your listing.
My biggest mistake in investing came in the early 1990's when Amgen was first suggested to me at about $15, I didn't invest. When it went to nearly 100 and split, I didn't invest. I had thought that it couldn't continue it's tremendous rate of growth. I was completely wrong, in the decade of the 1990's Amgen reached the $100 area and split multiple times, by the end of the decade it had split 48 to 1. Splits are clearly a positive for stocks, reverse splits are rarely considered positive.
Back in the 1990's $100 a share was considered expensive, most investors want to buy at least 100 share lots, many want 1000 shares, at least. Today a $10,000 investment isn't that much, and many people think of $100,000 or more. The point is, permitting the share price to grow to a few hundred is acceptable to many companies, but look at how much they grow after a split is announced. Frankly stocks selling for say $400 that do say a 4 for 1 split often return to near their $400 price in a year or less. I frankly doubt if they'd have grown to $1600 in the same amount of time, the lower share price spurred the growth.
That brings us to NWBO. I believe when the news of our trial comes out, people will see the stock as cheap whether it's $1, $5, or $10, they'll jump in with both feet, hardly considering the market cap. While a $10 billion market cap should be justified by the news, I don't know that say $25 billion would be justified immediately, but it certainly would be in the future. I believe that if media coverage is great emotion could easily take NWBO to $25 or substantially more, that's where many of us with major gains should consider how we wish to treat the retrenchments that clearly should come in the near future. Personally I intend to set trailing stop losses for at least a fair number of my share, openly trading me on what's in the Roth IRA's. My goal would be to greatly increase the number of shares I'm holding, while having sufficient cash to pay the taxes on the gains.
Gary
