Replies to post #839 on Cytokinetics, Inc. (CYTK)

[$hylo]

O/S is now approximately only 27.3 Million shares. Nice!!!

The reverse stock split will reduce the number of shares of common stock issued and outstanding from approximately 163.6 million to approximately 27.3 million. Concurrently, the authorized number of shares of common stock will be reduced to 81.5 million.
http://ih.advfn.com/p.php?pid=nmona&article=58145458&symbol=CYTK

[trope]

The fundamentals of a stock usually dictate the ultimate reaction to a reverse split. Amgen upped its stake in CYTK to 7.58% recently, and CYTK will be added to the Russell Global Index this Friday. It's one thing for a stock that is flailing to RS -- another thing entirely for a well-positioned stock to RS. So, yes, while reverse splits can be nice spots to short, you may also find yourself getting squeezed. A short squeeze occurs when demand can't be met by supply and the price shoots up rapidly in search of sellers. You don't want to be forced to cover in that situation. Don't forget that in conjunction with the reverse split, the total number of outstanding shares has been reduced. It could be a very dangerous short just as easily as it could be a good short. Disclosure: I'm long. I've also seen setups like this before that pretty quickly became squeezes. Not sure how the dice will fall in the morning, but I'll stay long either way.