Strategic Global Investments, Inc. (STBV)

[420man]

Reverse Splits

Reverse splits are the opposite of forward splits, obviously. They involve consolidating shares. The price increases and anybody that owns shares ends up owning less of them. The value of the shares are maintained, but this is usually not the case. Reverse splits usually drive the price down further. It just lays the foundation for the company to be able to issue shares at a higher price, even if it is lower than the price right after the reverse split.

This is far more common for penny promotions, but reverse splits are rampant in the OTC, and can be a good sign that a dilutionary promotion is in the works!!