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discreet_suffolk

01/27/10 1:51 PM

#61101 RE: Gmenfan #61100

Yes you are correct, that is why we need the revenues flowing 1st to hold the PPS up. It would be suicide to reverse Split without it.
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MisterZero

01/27/10 2:21 PM

#61105 RE: Gmenfan #61100

Excellent points, Gmenfan and discreet_suffolk.

The KEY to any reverse split is whether the company similarly reduces the authorized shares by the same ratio as the reverse split. Otherwise, it indirectly sends the message that the company plans to use the reverse split primarily as a tool for dilution.