Alderox, Inc (fka AROX)

[Nefyn]

A r/s does not alway indicate bad future pps. A lot of start up companies with little financing need to sell large quantities of shares to fund their projects.....this selling of shares often drives the price per share down. In order to make their stock more attractive, companies will often place a reverse split to increase the pps. Companies that cannot get further financing from investors/banks after the r/s often further dilute the stock by selling more shares, which will then drive the pps back down. However, companies that can get financing or generate profits after a r/s will often see the stock jump. Take a look at GERS and WTWO.....these both have seen their pps double right after the r/s. The one thing to look for after, or right before the r/s is good PR from the company....this could be new funding or updated financial showing profits.

It's all a risk....just whether you believe in the technology and the strength of the management team.