Replies to post #26698 on QED Connect Inc (QEDN)

[Adam426]

basically for every 5,500 shares you currently own, after the reverse split will now equal 1 shares. the value of your total shares will be the same as they are today, technically speaking.

Pre-split - 1,000,000 shares @ .0001 per share = $100.00
Post-Split - (1,000,000/5,500) 181.81 shares @ .55 per share = $100.00

In theory this doesn't sound like a bad idea, except almost ALWAYS, the share price will drop dramatically, and in a month or less, this stock will be trading in the trips again and basically you will have 181.81 shares @ .0001 per share = $0.18. I have yet to see a reverse split actually benefit shareholders yet. Anyone please correct me if I am wrong.

[lamlam]

Yeah, its a bad thing. Companies do it to keep their listing on the markets because their current stock price is too low and in danger of getting de-listed. This is a big split 1/5500. Means that if you had 5500 shares before, you will only have 1 share after the split and that share is worth the same amount as the 5500. The stock price should open at 55 cents after the split but no one will have more money. So long to the qedn upside, its been a fun ride peeps.

[nupapa]

Not a big fan of RS and I think Adam gave you correct information. The only "positive" is the reduction in shares which makes it less bloated long term and easier to move with buying. If you don't mind waiting it out for a long time you can see where the PPS settles and reinvest when the time is right and recover as it's moving again with a lower OS. But it's a long painful process.

Hopefully they have something up their sleeves that will make it jump when they RS. Wishful thinking, maybe.