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Re: Reverse splits 

By: Cactus Flower in ALEA | Recommend this post (1)
Thu, 07 Mar 13 2:56 AM | 95 view(s)
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Msg. 12795 of 54959
(This msg. is a reply to 12794 by DigSpace)

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hi dig,

yes. but that's what i was saying.

the reverse split is a symptom of an underlying truth. that truth expresses itself over the years in the form of wave's performance.

the reverse split is not the problem. the problem is the performance which makes the split necessary. that performance drives the price trend regardless of the split.

there's little point in getting mad about the mechanical expression of continued poor performance in the form of the reverse split. the problem is wave's performance.

and no amount of reason can persuade the faithful that something needs to change in order to improve the company's performance.

the problem as i see it is that they have put all their golden eggs into a basket which exists over the horizon. this could go on for years.




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The above is a reply to the following message:
Re: Reverse splits
By: DigSpace
in ALEA
Wed, 06 Mar 13 11:02 PM
Msg. 12794 of 54959

yes on paper it is mechanical, in practice the preponderance of equities migrate to their pre-split price, regardless of which direction the split is. Eroding equities tend to continue to erode, exploding equities tend to continue to explode. There are exceptions, notably splits just prior to the dot-com bubble burst.

Reverse splits happen for reasons, and in the majority of cases the split does not remedy the underlying reasons, indeed the reverse split generally puts an exclamation mark on the underlying flaws.


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