Replies to post #52389 on Bioelectronics Corp (BIEL)

[srinsocal]

I think the fear is when investors view a stock as sub penny it is easier to be driven back to that level after a reverse split. But as you point out the split its self takes away no shareholder value it is a perception issue.

[diarch]

Jimzin-the ratio is critical. At 1:1000, imagine the volatility of a such a thin float. Coupled with stellar news, it would be likened to trying to procure a case of Covington-perfectly labelled and boxed-in 1929. Neither obtainable nor affordable. The supply/demand equation would be thrown so out of balance with good news or bad.

[llh222]

You are correct in your calculations, a RS has nothing to do with market cap. Your and my net value would not change. However many shareholders view this as the kiss of death and will sell, thus driving the price down.
A RS usually happens on this level so a company can continue selling shares at a higher price for whatever reason, and the price will continue dropping again. But this is not always the case as a RS ma mean bringing the share price up to qualify for a higher exchange. How each investor deals with a potential RS depends on their risk tolerance level and knowing what they own. I look at it as another potential opportunity.
GLTY

LLH

[ddls]

There will be, NO-CompanyBuyOut-ShareBuyBack, only a reverse split of probably a one for 1000 as this would put O/S at 9 million shares, palatable for investors, until no new news with added dilution confirms this company is a Scam.

[Simpsonly]

It'll cost you 4 cases of Yamayama. I'm assuming you agree with my proposed fee for answering your question?

Your description of the RS structure is theoretically correct.

p.s. that would be the very large bottles - to be chilled for the Good Guy celebration after the re- classification of PEMF devices from Class III to Class II is published by the FDA in the Federal Register.