In my opinion/experience, any company desperate enough to execute a reverse split is on the brink of failure, the executives want to issue more free shares to themselves, or both. So far, DRGZ fits the pattern. We've seen quarter after quarter of losses with looming bankruptcy (see the filings) and the CEO awarded herself $1.9 million worth of shares, right after the split.
I'd love to see a list of successful blue-chips that started out on the pinks with gi-normous reverse splits in their history. I'll bet its a very short list with few (or no) items on it.
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