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Re: bgrass1 post# 37534

Thursday, 03/14/2013 11:42:17 PM

Thursday, March 14, 2013 11:42:17 PM

Post# of 92256
I realize most here are against a reverse split. I still maintain it can work out fine if ONE RS is the end of it. I think it has become common for companies to have a RS, THEN issue more shares, and have another RS, again and again. If this is the method used, of course it leads to disaster. HOWEVER, if a RS happens only ONCE, for the purpose of increasing the share price, thereby enabling a company to get listed on a more "reputable" exchange, it can be of great value. Having a higher PPS can enable Mutual Funds, etc. to buy shares in the company. This would not be possible if DROP remained a penny stock. When a stock can be owned by mutual/hedge funds,it brings more interest in the stock, and certainly more PPS stability.