Bioelectronics Corp (BIEL)

[art2426]

You did not tell me how a reverse split will affect the financial state of a company. All that happens is every stockholder will have less shares but same value as stock price will reflect the split. The bottom line of the financials will not change as in this case the continual losses every year for over twenty years will still be there and that reverse split will not affect the income statement one bit. The only thing it will affect is the amount of losses/share for the stockholders on the balance sheet. The reverse split will only satisfy the stockholders with a higher stock price but they will have less shares and will not change their financial position in this company. It's a cosmetic remedy only to raise this laughably low stock price for new investors. And stockholders that own shares are usually not very excited about reducing those number of shares. And in some cases, one that owns a limited amount of shares could get his investment wiped out by a reverse split. Watch what happens to the stock price if such is announced. The good thing here is that how much lower can this stock price drop since it is trading at ROCK BOTTOM now?