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Re: Jackroch post# 5451

Tuesday, 01/24/2012 12:43:09 PM

Tuesday, January 24, 2012 12:43:09 PM

Post# of 20680
I'm sure the CEO of Citigroup would take exception to your very public comments. But feel free to explain why comparing a company who is doing a reverse split with another that already has is reprehensible. Here's a few links for you discussing reverse splits and consider TEVE as you look at these and ask yourself why? What would possess a billionaire to do a reverse split, why not just do a stock buy back to lower available shares, increasing share value?

http://www.usatoday.com/money/perfi/columnist/krantz/2010-03-04-reverse-stock-splits_N.htm

Here's an excerpt from the above link "Reverse stock splits are exactly the opposite of regular stock splits. In a reverse split, companies take back shares, to artificially boost their share prices. This raises the price by reducing the number of shares outstanding."

But why then increase authorized shares to 600 million?? This does not make sense.

Here's an article supporting my position using the stock I previously mentioned. Now remember, I am not comparing the two companies but am comparing the reverse split scenarios. This link mentions several companies and their results.

http://online.barrons.com/article/SB50001424052702303389204576484341965875236.html

Now not all reverse splits perform negatively but a majority do. But how many have increased their authorized shares. I welcome your thoughts.

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