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Re: 1Desperado post# 25183

Tuesday, 02/09/2010 10:36:38 PM

Tuesday, February 09, 2010 10:36:38 PM

Post# of 105534
You're right it's not negative, not if it is done properly buy a successful company. What makes a reverse split negative is when a company is struggling and when investors think that after the split the company will throw more shares in and redilute it all over again. Matt would never do that to shareholders if a reverse split was done, but a reverse split will be the absolute last option he will choose. In my eyes a reverse split is not negative nor positive, it's neutral, but unfortunately there are a lot of people that trade and don't understand the system and therefore would panic and cause the pps to drop a bit if a reverse split were to happen, Let me add that it would soon after go right back up, but you'd really get the bashers coming in if it did happen. Some people have had bad experience with reverse splits because they had invested in really poor companies with no future or pure scams. Do your DD before you judge such a decision.
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