Blackout Media Corp (BKMP)

[virginian]

I just said that the price in your scenario didnt change after the split ,I was just reacting to your scenario. Thats all
The price after the split should have been .50 not .0005.

Posted by: stockster5
In reply to: nealgalt1 who wrote msg# 228915 Date:4/9/2007 12:05:53 AM
Post #of 229196

as per earlier posts about r/s... lemn is basing his statements on past experiences being involved in reversed penny stocks. So am I. And the landscape isn't improving. Penny reversals are not in the same category as macro stocks... Macro's reduce 10's of millions, shell companies reduce BILLIONS/TRILIONS (caps for effect) ... A quick math lesson will illustrate the immediate loses to the small (under 10 million held) common shareholders.
Company A has 10 billion o/s - @.0005
shareholder S1 has 10 million @ .0005 = 5000.00 pre r/s
CA announces 1 for 1000 reverse split - no name change.**(a)
CA now has 10 million o/s day of split @.0005
S1 now has 10k held @ .0005 = 5 dollars
The immediate damage to S1 is apparent and the pps would need to climb to .50 to recoup what profit before r/s. That kind of percent gain is highly improbable.
**(a) the real fun part is when a name change is performed and your original stock is deemed worthless... that's real fun for us.

hope this helped

S5