PositiveID Corporation (fka PSID)

[greaseyfingers]

PSID's, (SHADY), Rationale for Doing a Reverse Stock-Split..IMO
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LET'S ALL US uPSIDe LONG TERM INVESTORS HOPE FOR THE BEST, and EXPECT THE WORST NOT TO HAPPEN..
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If PSID does a dreaded reverse stock split in the ratio of 1-for-10 to 1-for-25, as determined by the Board of Directors..

It seems to me, doing that would make it much easier for PSID Management to create more Dilution, by greatly reducing PSID stock shares, then the remaining shares would be higher priced..

Then, PSID could fly under the radar much easier, creating less suspicion, and increase the amount of authorized shares to be sold by PSID Management, for increasing their GREEDY SALARIES and BONUSES, and cause more DILUTION to PSID Share Holder Value..
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The Board of Directors believes that it is in the best interests of the Company and its stockholders to reduce the number of issued and outstanding shares through a reverse stock split. Immediately following the completion of the reverse stock split, the number of shares of PositiveID common stock issued and outstanding or held in treasury will be reduced proportionately based on the reverse stock split ratio of 1-for-10 to 1-for-25, as determined by the Board of Directors.

A reverse stock split by a publicly traded company reduces the number of shares outstanding, but leaves the market capitalization of the company the same, which results in an increase in the price per share of the company’s stock. Put another way, after a reverse stock split, the enterprise value of the company is spread over fewer shares and so the per share price of the stock will be higher.

The Board of Directors believes implementing a reverse stock split is likely to increase the market price for PositiveID common stock as fewer shares will be outstanding. The Board of Directors further believes that the increased market price of PositiveID common stock expected as a result of implementing the reverse stock split may improve marketability and liquidity of PositiveID common stock and encourage interest and trading in PositiveID common stock.

We are asking stockholders to approve this Proposal because we believe a reverse stock split will result in a higher price per share for outstanding shares of our common stock. This, we believe, could provide a number of potential advantages.

(BULL CRAP) Potential Advantages from a Reverse Stock Split

We believe that the reverse stock split could enhance the appeal of our common stock to the financial community, including institutional investors, and the general investing public. We believe that a number of institutional investors and investment funds are reluctant to invest in lower priced securities and that brokerage firms may be reluctant to recommend lower priced stock to their clients, which may be due in part to a perception that lower-priced securities are less promising as investments, are less liquid in the event that an investor wishes to sell his, her or its shares, or are less likely to be followed by institutional securities research firms. We believe that the reduction in the number of issued and outstanding shares of our common stock caused by the reverse stock split, together with the anticipated increased stock price immediately following and resulting from the reverse stock split, may encourage further interest and trading in our common stock and thus possibly promote greater liquidity for our stockholders, thereby resulting in a broader market for our common stock than that which currently exists.

Certain Risks Associated with the Reverse Stock Split

There can be no assurance that the total market capitalization of our common stock (the aggregate value of all PositiveID common stock at the then market price) after the implementation of a reverse stock split will be equal to or greater than the total market capitalization before a reverse stock split or that the per share market price of our common stock following a reverse stock split will increase in proportion to the reduction in the number of shares of our common stock outstanding before the reverse stock split.

There can be no assurance that the market price per new share of our common stock after a reverse stock split will remain unchanged or increase in proportion to the reduction in the number of old shares of our common stock outstanding before a reverse stock split. For example, based on the closing price of our common stock on February 28, 2013 of $0.02 per share, if the Board of Directors were to implement the reverse stock split and utilize a ratio of 1-for-10, we cannot assure you that the post-split market price of our common stock would be $0.20 (that is, $0.02 × 10) per share or greater. In many cases, the market price of a company’s shares declines after a reverse stock split.

Accordingly, the total market capitalization of our common stock after a reverse stock split when and if implemented may be lower than the total market capitalization before the reverse stock split. Moreover, in the future, the market price of our common stock following a reverse stock split may not exceed or remain higher than the market price prior to the reverse stock split.

The proposed reverse stock split may decrease the liquidity of our stock.

The liquidity of our capital stock may be harmed by the proposed reverse split given the reduced number of shares that will be outstanding after the reverse stock split, particularly if the stock price does not increase as a result of the reverse stock split. In addition, the proposed reverse stock split may increase the number of stockholders who own odd lots (less than 100 shares) of our common stock, creating the potential for such stockholders to experience an increase in the cost of selling their shares and greater difficulty effecting sales.

If we effect a reverse stock split, the resulting per-share stock price may not attract institutional investors or investment funds and may not satisfy the investing guidelines of such investors and, consequently, the trading liquidity of our common stock may not improve.

While our Board of Directors believes that a higher stock price may help generate greater/broader investor interest, there can be no assurance that a reverse stock split will result in a per-share price that will attract institutional investors or investment funds or that such share price will satisfy the investing guidelines of institutional investors or investment funds. As a result, the trading liquidity of our common stock may not necessarily improve.

http://www.sec.gov/Archives/edgar/data/1347022/000139843213000124/i12116.htm
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sayuncle Friday, March 01, 2013 5:52:35 PM
Re: condoe3 post# 6083 Post #6085 of 6100

Can we get some DD on this ASAP? There is no date on it but it has Positive ID and Bill Caragol's name all over it. Something may be off with this one.

I noticed that stock prices dived under 2 cents. Hmm, something is wrong with this picture.

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Robsct Friday, March 01, 2013 6:24:19 PM
Re: Pisd post# 6092 Post #6102 of 6107

Well obviously the only reason to reverse split is to get a share price high enough to get back on the nasdaq and open it up to the big money investors before the contract is awarded to us. That would give PSID a bigger run up when it happens. Ordinarily a r/s would be the end of the stock on the BB but if we get on the nasdaq and then get the contract we could be just fine. They have obviously thought this out carefully and have a plan.

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Robsct Friday, March 01, 2013 6:36:12 PM
Re: None Post #6103 of 6108

No, it won't work. Even a 1 for 25 split would only give us a .50 cents a share pps and that's not high enough to get back on the nasdaq. And that's at today's price before a sell off. There are not enough shares involved and the price is too low. There's got to be another reason. What if they knew a filing like this would cause a sell off that would free up many millions of shares for someone to gobble up? And they have no intention of doing a R/S.

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