Drinks Americas Holdings, Ltd. (DKAM)

[sneaky_peaky]

Correct Coach. Everything is in place. Now it seems the only piece missing is the $5.00 price for a sustained period. That's the same thing that happened to FRPT last year. All the pieces were in place and then some hedges showed up with one goal in mind. And of course they pulled it off. No reason why it couldn't happen here. With so many of those 144s gone there is really little standing in the way of some hedge funds running it up. Of course on a percent basis most current shareholders would rather see a move from $2 to $8 for a triple instead of hoping it goes from $10 to $40 after a reverse split. At the same time though mutual funds are not apt to come near the stock while it is still OTC and definitely not below $5. So a catch-22 of sorts.

Definition: A reverse stock split is a reduction in the corporation's total number of shares available and an increase in the stock price.

A reverse split usually occurs for one of two reasons…

1.) Most mutual funds won't invest in a stock below $5/share. Some companies will reverse split their stock to try to get it above that level so mutual funds will invest in it.

2.) Stocks must remain above certain price levels to stay listed on a stock exchange. Companies might do this to stay listed. A 1:2 reverse split means "1 new share for every 2 current shares." So if you owned 2 shares of a $3/share stock, you would then have 1 share of a $6/share stock after the split.

I said before that is so crucial to get that outstanding down to 16 million and the float to 3 million. That does not leave many shares for the average beverage sector fund to grab on to. Once the guys find out that top management is locked into selling their shares for two years it makes it an easy sell for them to take positions. Once a reverse is complete then there is every reason it could start running again as players hop in like they did on FRPT when the time approaches to go for Nasdaq listing. That's why FRPT went from $6 to $24 so quickly.

But hey, we see all the positives out there and we make management aware of them. All we can do. Plus we keep sending the stock and all the financials to every analyst out there. Eventually some hedges will figure out the stock is being accumulated by somebody else who plans on taking it higher and they'll want in on the run before it really gets moving again.