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ltesprit

04/13/06 1:26 PM

#246255 RE: Spokes #246252

Well said. A r/s has no theoretical effect on share value. It is all a matter of circumstances. If MSFT were to reverse split today, it's value would not subsequently plummet afterward.

QBID is about as far opposite of MSFT in financial health as you can get. It too, however, can safely do a r/s IF investors feel comfortable with the credibility of management, its committment to end dilution, and feel the new share price accurately reflects the market value of the company. Right now the market value of a share of QBID is somewhere below .0001. Therefore after a 500:1 r/s, do NOT expect the pps to be .05! It will be somewhere below it, all things being the same.

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ttgop

04/13/06 2:48 PM

#246262 RE: Spokes #246252

a rs always means the company is worthless. and will always go back to the basement. No stock in penny land has ever survived a RS. and this is what quite a few people in this room want.
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profithunter0

04/13/06 4:13 PM

#246292 RE: Spokes #246252

Damn good post. e/m