Replies to post #172627 on Kraig Biocraft Laboratories Inc (KBLB)

[arachnodude]

Nice!

[igotthemojo]

“ If a R/S doesn't change the fundamentals, why does it create a fundamental collapse of the share price?”

The otc is where dreamers go to invest...it’s why this sp is .22...

Do a 1/40 r/s and get on nasdaq where you have sophisticated investors with plenty of money and understand that a company with no money, product or revenue doesn’t belong there and what do you think will happen to that company?....

It will get eaten alive...and not from any misperception...but because they perceive it as it is...

Now if kblb DOES come out with wonderful news and the pps gets to 4 bucks, then what the hell was kim thinking with a r/s with the sky high ratios?...and why the hurry when there is no need to hurry...there would be no windows and no need for deadlines...just do it when it’s a good time...

That 1/40 r/s was never just a whim...it’s a real possibility...THATS why it’s there...

[WebSlinger]

<< If a R/S doesn't change the fundamentals, why does it create a fundamental collapse of the share price?

The answer is: Misperception >>

I agree with you. The reverse split won't change the market cap at all. If an investor has $10K of stock in KBLB before the reverse split, then they will have the EXACT same amount after the reverse split.

But the perception is that companies perform a reverse split for all the wrong reasons (which is mostly true).

IMO, the NASDAQ should change their requirement of $4 and make it something more meaningful. A $4 stock is not inherently better than a $1 stock. But they won't change anything because of the perception...