OMDA Oil and Gas, Inc. (OOAG)

[grapeman]

Reverse split. Example you have 10 shares worth .20 cents each. Company does a 10 - 1 R/S meaning your 10 shares is now 1 shares, but it is worth $2 ( 10 times more thatn before.)

Problem is penny stocks with no profit will pump a new business prospect and then do an R/S saying that they need to have the PPS at a real level that reflects the comanies current position and thus be able to attract real investors. Sometimes it is used to get a company over $5 which means mutual funds can then invest in.

Problem with pennys is they do a 10,000 to 1 take a .0001 stock to $1,, and because there is no real income or the deal falls through,, the prices quikly drops back to .0001. Meaning your 1 million shares is now 100 shares,,, and still worth only .0001,, or 1 penny.