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Re: longvper post# 2186

Friday, 01/21/2011 8:17:23 AM

Friday, January 21, 2011 8:17:23 AM

Post# of 56374
I think the issue is that no serious investor would want to buy into a company that has a consistent sp of below a 1/2 penny no matter what the progress of the company looks like. Bringing it to above a penny, for example, a 1 for 10 split would bring it to around .03. Sub pennies are not the kinds of companies serious investor want to take a chance on, IMO. Reverse splitting makes it more appealing/less risky psychologically.

For Google, it was the opposite. Initially it was around $100/shr. That "seemed" too high and therefore too risky. We all know now that the price had nothing to do with the evaluation of the company.

olvperman
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