Genta, Inc (fka GNTAQ)

[The Holder]

Hilarious...

...how big of a zealot does someone have to be to proclaim that a stock will explode after a company who is out of money requests a reverse split? This is ludicrous! These desperation plays, known as reverse stock splits, can signal sharp declines ahead that could wipe out a good part of your wealth. Its better to look at a reverse split as a flashing red light warning that you may need to kick a stock out of your portfolio. As many as 75% of all stocks wind up trading lower after a reverse split. Investors who failed to sell shares in several reverse splits in just the past few months have seen their holdings get hit by 60% or more in no time.

Smaller companies -- or those under $500 million in market capitalization -- tend to do the worst. Reverse splits are like a message from management that the underlying business trends are so rotten, they wont be enough to get the stock price up to snuff.