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Thursday, June 28, 2007 12:49:15 PM
I know the market is very negative toward reverse splits. I think it is an irrational reaction and for the wrong reason. The problem is not the reverse split but the fact that many companies that do them continue to dilute. The reverse split is just a means to facilitate more dilution. For this reason reverse splits have got a bad name. If the sharecount had stayed flat and this company had been generating increasing profits I think the stock price would have been doing very well despite the reverse split.
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