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Alias Born 04/02/2010

Re: Smoke and Mirrors post# 15596

Friday, 05/28/2010 5:22:10 PM

Friday, May 28, 2010 5:22:10 PM

Post# of 22746
Reverse splits are not going to turn out the way you expect them to. If there is warning of a reverse split everybody hurries to sell; if there is no warning then as soon as trading begins there's going to be a selloff anyways. The PPS of the stock usually goes DOWN when trading starts back up and something that you'll find out is that often times there is a huge gap between the bid and the ask leaving you with little choice but to accept a loss and I'm talking 50%+ if you can't get out within the first couple days(My only and suprise reverse split ended up being a 80% loss in the first three trading days). The stock continues to go down until it's another rinse and repeat with a forward/reverse split.

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