I think the question is less of valuation and more of why this method. Assuming your O/S numbers are correct, why a reverse split at all? Based on your numbers, theoretically they could have realeased earnings and O/S and bam we're on Nasdaq in a flash.
Not only did that not happen, but we get a 100:1 r/s and it's said that 900mm shares will be available post split. If that's not baffling I don't know what is.
Also, if r/s is going to force a short covering, they're going to allow it at a much lower price than would be otherwise.
The only logical reason I can see for such a monumental split number (100, yet originally 250) is to create an incredibly low number of shares, so that the bigger the air count is, the more money shorts have to cough up post-split.
Either way, management needs to post the 10-K soon, as they have alienated many investors and continue to do so with each passing day. Failure to do so would mean one less (me) on next Wednesday. IMO
Best wishes to all hanging on,
JRD
