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Re: agbjr post# 6123

Monday, 05/09/2011 11:40:05 AM

Monday, May 09, 2011 11:40:05 AM

Post# of 43286
Yes, but you're comparing companies with actual revenues (I assume) to penny stocks with no revenue. A reverse split does not necessarily adversely affect a company with higher revenues over the long-term because the revenues will eventually justify a higher price-to-earnings ratio. You're also analyzing a time period where larger companies were battered by panic and oversold and were bound to come back unless the whole system fell apart.

A penny stock with no revenue and a reverse split is a prime candidate to be shorted. As I mentioned earlier, if the company cannot justify a value of .05 to the market, what makes it able to justify a value of .50 to the market after a 1:10 R/S?

My posts are just my own opinions. Do your own DD.

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