Greystone Logistics Inc. (GLGI)

[Olmsted]

Good points and perspective from Vince. Why is it trading at a 20% discount? I'd wager it is mainly because they don't have the cash on the balance sheet to consummate the transaction. I like Vince's 'required return' explanation too. Probably a bit of both.

Now, as to whether it goes through - I believe they will be able to arrange financing, but not sure what that may look like yet.

If you are a long-term holder, root for the reverse split. It will boost profitability nicely (off the top of my head, ~10% on a TTM basis). My understanding is that they will continue to provide investors timely financial information. It will just not be in the context of an SEC requirement. (I view this as a slight positive. Eliminating all that boilerplate makes for awesomely concise and easy-to-read financials.)

And yes, one has to get a feel for management's character to invest in this post-reverse split. I've made my call, and am long a few.