Replies to post #8821 on Green Globe International Inc (GGII)

[momoore3]

yep

[gattes12]

Mariaone this is exactly what I was referring to yesterday when talking about how companies abuse the PR circuit. They could have submitted another 8-K reporting this and did nothing else. The idea is to PR it and hope that investors get excited (just as the have before) so they can buy up the shares the company dumps. Obviously the response wasn't as hoped for so the pps takes a big hit.

And always remember from the blog:

"About Reverse Splits
March 7th, 2008
Over the past several weeks, I have been asked for my thoughts regarding reverse stock splits but I have not responded directly. Now that GTREX Capital has filed to change its name to Green Globe International and to give the directors the right to reverse split its stock up to a 200 to 1 rollback within the next nine months, it is only appropriate that I answer that question now.

Reverse stock splits are not endemically bad or always a negative experience for the existing shareholders. However, in the micro cap world this seems to be the rule not the exception, as there is generally very little to support for the stock price in the first place and then there is usually a capital-raising event just after the reverse that puts more pressure on the stock.

We try to keep to a discipline of accomplishing as much as possible within the current capital structure of a client company and to use a reverse stock split to accomplish a specific and positive purpose such as meeting the requirements of a reverse merger closing, meeting the requirements of an application to trade on a higher exchange or because the current stock price and capital structure is no longer reflective of management’s belief in the true value of the company.

In the case of GTREX, it was the latter.

While there are no guarantees with regard to a certain stock’s performance, if a stock is trading at a price that can go no lower and market makers are taking in all the stock that comes to them at this price, then it is logical to think that they would look to sell their positions at a higher price or at least support their positions after the reverse stock split has occurred.

It will be interesting to watch, that’s for sure. "