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Re: Reverse splits

By: orda in ALEA | Recommend this post (0)
Wed, 06 Mar 13 8:33 PM | 76 view(s)
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Msg. 12778 of 54959
(This msg. is a reply to 12773 by Cactus Flower)

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Hi alea. But there's a psychology around it that is all negative. The end result is that the share price will take a hit, money will be more expensive and harder to obtain. Etc.




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The above is a reply to the following message:
Reverse splits
By: Cactus Flower
in ALEA
Wed, 06 Mar 13 8:14 PM
Msg. 12773 of 54959

Hi orda,

reverse splits make no difference to the percentage of the company you own.

in spite of what we are told, reverse splits really aren't the problem.

the problem is the performance which makes the reverse split necessary.

reverse splits are necessary simply to remain listed.

no ceo should survive two reverse splits. not because of the splits but because of their performance.

in this case, we have been witnessing the performance. but strangely, many investors think nothing should be changed.


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