Greenshift Corporation (GERS)

[Oz the OK]

RS = Reverse Split.

The company will reverse split the stock, taking the float from billions of shares to millions of shares. The stock price rises. Your equity remains the same. However...most of these penny stocks then begin issuing new stock again to raise money for operating expenses since most have no revenues. This new dilution causes the stock price to drop again after the reverse split, and your equity gets hammered.

So let's say you put $100 into Greenshift today, buying half a million shares at .0002. Greenshift announces a 500 to 1 reverse split. You now own 1000 shares at .10 per share, which is still $100. However, you're more likely to see the stock move down from that .10 price than up, as the markets anticipate future dilutions of new stock to raise operating capital. Over time, your current $100 equity could be worth pennies.