Avid Bioservices Inc (CDMO)

[MobyInvestor]

"Me-thinks you need to re-visit your financial books."

Oh, DD you ask? Well, here's some for you to chew on.

Pg. 2 of the following:

http://207.36.165.114/NewOrleans/Papers/1801768.pdf

"In fact, as we shall show reverse splits provide a decidedly negative signal to the market in that they are a confirmation of poor performance. This is particularly the case when they are enacted for the purpose of maintaining a listing on an exchange because the firm doing the reverse split has not been able to meet the listing requirements."

Here's a great quote from this article:

http://news.cnet.com/Reverse-splits-arent-always-reversals-of-fortune/2100-1017_3-248744.html?hhTest

"Since it's done for purely cosmetic reasons and doesn't change a company's finances, the market knows it and the company gets penalized. Most companies end up seeing their stock prices continue to slide," said Pamela Peterson, a finance professor at Florida State University and co-author of a 1992 research report, "A further understanding of stock distribution: The case of reverse stock splits."

This one isn't relevant to PPHM since it doesn't have significant earnings, but it's an important paper from the perspective of post R/S performance of companies that do:

http://www.fma.org/Chicago/Papers/FMA05ReverseStockSplits.pdf

Regards,

moby