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Bigdogs

09/07/08 11:03 AM

#108713 RE: crazy horse 0 #108712

This always puts more pressure on the Shorts
because if they decide to Short a bunch of shares the number they are currently short will either rise by 2x or 10x.

So lets say the stock was at .20 before the Forward split. After the F/S it would say open up at .02 with a 10 to 1.

If the company is still very confident in its future and stock price the lower price will allow more traders to buy in at a lower price and do it all over again on the upside as it rises the shorts lose 2x or 10x as much if it rises back to .10.

ITs very good news for all shareholders with a company that is very confident on its future and has the Assets and profits to continue the growth for quite a while.