Eternal Image Inc (fka ETNLQ)

[discreet_suffolk]

Basser1 - can you answer my question that no one seems to be answering?

Why do a R/S when if the company needs capital they should just perform a secondary?

The only 3 reasons I see for doing a reverse split are as follows.

1) Reduce the O/S to increase the PPS so a company can get more exposure to mutual fund managers that can only invest in companies with a low PPS. (No Capital appreciation there, the company makes no money to pay bills)

2) A trick to show an increase in earnings. If a company earns .012 per share it is reported as .01. The 2 is dropped off, but by doing a 1-10 (example only) R/S the earnings now become .12 an increase of 20%.

3) A Market Mover like NITE instructing them that a R/S is the thing to do. Than SHORTING the stock as they take their money to the bank.

4) ?