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Re: Slojab post# 3085

Saturday, 03/06/2010 2:54:51 PM

Saturday, March 06, 2010 2:54:51 PM

Post# of 8105
right, but the smart companies do it right... you keep a great share structure, and with the support and enthusiasm of the existing shareholders you drive interest in your shares. I'll show you an example of a company that did it without a reverse split.

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=wsdt&sid=0&o_symb=wsdt&freq=2&time=13

I bought the news the first day around 4 cents...
without a RS it went all the way up to nearly 10.00 per share.
and it did it gradually over a period of 2 years.

but if you do a reverse split, as proposed here, first of all every existing shareholder is now your enemy. then you wreck the liquidity of the company. you have to find new investors on your own to rebuild a tradable float, and that takes a lot longer than many companies realize. it can take months to years.

and your old investors will never forget what you did to them, and every message board on the internet will discourage new investors from taking any risk on the company.

its a lose lose scenario