Replies to post #112231 on Kraig Biocraft Laboratories Inc (KBLB)

[bananarama]

While in principle, a reverse split sounds great, to me, it is not. I have emailed Kim and Ben letting them know that I am NOT in favor of a reverse split. I have never ever been in favor of one.

I totally agree with what you are saying. It sounds wonderful, but it turns out to be not as great as supporters first expected.

[carp302]

Agreed

[imelcooler]

Let me second that motion to agree .

Welcome to the board.



http://investorshub.advfn.com/boards/read_msg.aspx?message_id=119081298

[jazz710]

I think you've hit on a critical distinction that most folks realize but that cant' be overstated.

At the point of a reverse split, it is cost neutral. 100 pennies = 1 dollar bill = 4 quarters = etc.

Reverse Splits should NOT be used to artificially prop up a PPS. Without sufficient pressure to raise the share price AFTER the split (at which point shares will be more 'expensive' to new buyers), they can fall right back down, and severely devalue the company.

Reverse Splits can be useful when a company makes a substantial move from one phase (like a developmental stage) to a more profitable, stable phase (like a mass production stage). If profits are coming in and the company continues to makes strides post-split, it's certainly not a RULE that the price will plummet.

Long Story Short: Don't do a R/S to get to a higher PPS. Use a R/S to consolidate shares on the rise and to move from a small fish in a big pond, to a bigger fish in a smaller pond.