Replies to post #6370 on PositiveID Corporation (fka PSID)

[steltz02]

I don't think that theory holds up.

What is the difference between diluting with a 2 penny stock and a 20 cent (or 45 cent) stock? If it's the management doing the diluting.. they have already been doing in for 6 months... What has changed that they need to do a reverse split so they can dilute at a higher price with less shares? Mathematically it equates to the same thing.. Futhermore, they of course know that if they do a reverse split (or even announce a possible meeting for it) the stock is going to take a hit, making their total value of held shares LESS, which would backfire as far as diluting aspirations.

If they continue to dilute, it will continue to be held in at tight channel, simply at a multiple of 10 or 25..

If they get the gen-3 contract... well a reverse split makes perfect sense.. If the stock goes up 4900% after the contract is awarded, we still won't be on the Nasdaq... However if it 'only' goes up 1000% and we do a 25-1 reverse split, then we are on the Nasdaq immediately...

People will sell off tomorrow... no doubt about it... Will there be MMs there to pick it up? We shall see, and it will be very telling.