Replies to post #210 on Dr Foods Inc. (DRFS)

[maggco]

It sounds like the company is asking for a vote on a reverse split on the stock. Meaning you'll end up with 1 share of stock (post) for every 4 shares of stock (pre) you own now. I never heard of a reverse split described in this form, so I'm just guessing at this point.

[huggums]

OT..dcmcl, in your letter there should the other specifics, what is the current authorized amount of shares? Are they reducing that also and what amount? Half would be ideal. Companies do a reverse split for many reasons, usually not great. Sometimes inconjunction with a reverse merger. But, simply lets say you have 10,000 shares of the company trading at 1.00. After the split you should have 2,500 shares trading at 4.00 each. Same amount of money, but less shares. In my experience, a reverse split signals weakness or probable future dilution. Very few have been successful, but it really depends on the company and the circumstances. So, you be the judge with your knowledge of the company and management. Good Luck!!
P.S. I put the OT (Off Topic) first in this post since it does not deal with the topic of this board. It is appreciated by readers who see the heading and can skip the post since it does not pertain to the stock at hand. Just a FYI in case you ever post on other boards. We don't even have a moderator here, so it's kinda a free for all for now!