Friday, April 20, 2007 8:30:16 AM
One of the things that makes the the R/S so bad is the illusion it projects. Or at least as managment would project it. For some of these companies, the PR, if there is one, makes it seem as though it is necessary (i.e. Reverse Merger or for a more attractive price) and is being done for the good of the company and its investors. In reality if this stock were to R/S to let's say $.20/share how far up would the stock price have to go for some of the longs (And I mean the true ones) for them to just recover their money? Quite a bit I'm sure. To help investors, this company would have to buy back/cancel/retire the O/S and A/S and let the stock achieve a better value on its own. When that happens people would take this stock more seriously. Right now the company sells shares to obtain services. The shares are dumped as soon as services are rendered. What does that say for the value of this stock? Personally I would rather see them dilute themselves into profitability rather than thru R/S. Guess I'm just settling fo the leser of two evils.
Where are they now?
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