Replies to post #5409 on SilverSun Technologies Inc (SSNT)

[neophyte184]

Det,

But that is the difference between a stock that is already trading at a more respectable level and what we have here.

If Trey did a 1 for 20 R/S, the pps would be .002 versus your stock that ended up trading at around five bucks a share. Stocks like that have already earned enough in terms of reputation to survive a R/S and not be seen as making one final desperate maneuver to hang on and dilute further....

My feeling is that unless they were going to uplist to the big boards, a R/S for Trey is a bad idea. I also know that Meller feels the same way, or at least he did back in January of this year when he told me so.

Even the big boards stocks can be harmed by R/S's. I was trading ETFC which conducted a R/S a bunch of months back, and their stock price almost immediately did an about face and is still not back to where it was at the point of the split. I realize there are other factors that were depressing the price, but you get my point.

Just MHO as always!

Neo

[gmcdonald34]

1 for 20 wouldn't be bad, but that clearly isn't the case here. You are talking about a NASDAQ stock vs. a otcbb stock. . . .no comparison. I have been R/S out of existence in the past, they give me a token 1 share and say thanks for playing. Currently I'm in GBOE which did a 1 for 5500 R/S. For those who got in at .0001 they are at .55 and people like me at .0002 are at $1.10. Current price anyone???? .15. You want to factor commish in, I'm down a $1 per share. The odds on that going up a $1 anytime soon are doubtful. So I ask you this Mr. Pro R/S. . . . let's assume my ave price here is .0004 and on a normal day I'm down 75%. . . .I have a better chance for this to go to .0004 and break even than I do of it going from .50 to $2 a share. So no, you will never sell me on the fact that a R/S of a penny stock is a good thing, I have never been involved in one that has been good.

Sometimes a reverse can work

Vitesse Semi, after a couple of years of getting their books in order, did a 1:20 RS last July as part of their effort to get relisted on the NASDAQ.

The stock remained above the $5 RS price for a month, until a bad Q2 report drove the stock to sub-$3 (I did some buying then). Subsequent reports showed improving results, and the stock rose to about $5 by Feb 28, the day they announced they would relist with the NASDAQ on March 2.

VTSS is trading at $5.44 today.