EP Global Communications Inc fka EPGL

[Scragapenny]

Yes. A reverse split in pinkyland tends to follow this trend (numbers are made up, obviously, for argument's sake):

Company X has an OS of 5 billion shares, 3 billion float, 2 billion preferred...

1. Reverse split (say, 5:1) proposed because the pps is in the cellar and dilution will bring no revenue.
2. Boards argue the merits of a reverse split.
3. Shareholders see that their position could be devalued 80% on the split.
4. pps loses 80% of value (if possible, not for .0001-.0004 pps) on massive sell off.
5. Split happens but only to the float. 3 billion shares become 600 million.
6. pps blips up to .0006.
7. People realize they have lost 25-50% of their value.
8. Another sell off happens.
9. The company PRs good things on the horizon and new management sought consolidation to show a true value, but that hasn't worked out as planned.
10. Boards holler scam, pumpers say the pps will rise.
11. 6 months go by with little movement.
12. pps begins to go up with anticipated fins.
13. Fins are released and the company has diluted another 200 million shares after the reverse split.
14. cycle begins anew.

R/S is rarely a good idea regardless of the company. Regardless of intention, people have a poor view of them and they scare the crap out of shareholders.