Careful now. Never say never. I am not now a shareholder of Elite, so I can only respond in "generic" terms, but twice in the last 30 years, two struggling penny medical stocks I owned, both for financial reasons, implemented stock reverse splits. In the first instance it was a company developing ventricular heart assistance pumps, and in the latter, a developmental pharmaceutical firm hoping to gain F.D.A. approval on a new drug. In the case of the heart stock, management watered down the shares to the point thru reverse splits so much, that I finally wound up with no shares at all, and in the latter, my share ownership has been reduced from 500 to 45. Unfortunately, the valuation from time of purchase has also been reduced from $2,000 to a current $45.
Now I'm not implying that reverses stock splits are always negative. Each situation has to be examined under its own merits. What I am saying, however, is that one should not necessarily say that this will never happen. A reverse split is undertaken for any number of reasons, when the corporation decides it wants to "prop up" its share price. I simply want to illustrate, however, that in the above cases, this effort later turned out, for all practical purposes, to be the final "kiss of death" for these "ailing" corporations.
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