InvestorsHub Logo
Followers 239
Posts 33881
Boards Moderated 0
Alias Born 11/15/2009

Re: Jeff-M post# 51930

Saturday, 02/12/2011 7:58:35 AM

Saturday, February 12, 2011 7:58:35 AM

Post# of 105534
Jeff, it makes no difference. You have already seen the value drop by 20% just with the announcement. A R/S now would put the PPS at $1.50. By the time it goes through the share price may be closer to $1.00. REVERSE SPLITS suck the life out of a stock. The current investor will lose about 50% of his value here after all is said and done. If you originally bought in at 1 penny, then the chances of you seeing any value close to that after the R/S is very unlikely. This would mean the stock price would have to climb from $1 post split to $5. You're looking at a 400% increase needed just to get back the value you once had. And at these dollar levels it will take much longer, if ever to achieve. Whereas, back in sub-penny-land you could possibly see that within days or weeks depending on what's going on with the traders who play these stocks.

The value of the PPS will be around $1 after the split and the dust settles give or take .50.

This is a depressing day and scenario for all the longs here.

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.