China Wood, Inc (fka CNWD)

[nsomniyak]

The 1:540.xx reverse split that is pending makes it hard to trade this one. You have to buy about 54070 shares pre r/s to get a round lot of 100 post r/s. You don't NEED to end up with a round lot, but any meaningful position needs to be at least that size. To my knowledge they have not announced if they will credit cash in lieu of partial sales.

While 54070 shares is not overly expensive, it does mean the smaller investor is faced with three bad choices - buy at market (an absolute no-no in sub pennies), buy at the ask (in this case at the top of a very big spread--not attractive), or use an AON order on multiples of 54070 shares somewhere within the b/a spread (unlikely to execute). None of these are attractive choices.