KMA Global Solutions International (KMAG)

[HankVerde]

I've been investing in stocks for over 40 years and the only R/S I've ever seen work is Priceline.com and it was a very hot stock when it happened. There may be others, I'm sure there are, but EVERY R/S I've been involved in has been a disaster.

The latest example is GALT, which I've owned for a long time. It was trending nicely from 65 cents Dec. 2011 to 99 cents Mar. 2012 when the CEO, who owns the majority of the shares, did an unannounced 1-6 R/S overnight. The stock opened at $5.94 the next day (6 x $0.99) and quickly dropped to $1.89, around a 70% drop. It's now at $2.10.

This is very typical of the price action following a R/S, so please don't wish for one or you may get what you wish for.