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ModusLink Global Solutions, Inc. Message Board

  • benjohnson1 benjohnson1 Dec 13, 2002 10:34 PM Flag

    Reverse split commentary

    Big deal.. 10 for 1

    Realize that with fewer shares in the float post reverse split consider these thoughts.

    1) What is now a $0.25 move in daily price will magnify TENFOLD to $2.50. When's the last time you saw price action like that?

    2) Margin accounts open up to full status letting the rookies mortgage the ranch again while speculating their LONG or SHORT positions

    3) More margin means more shorting which equals even MORE volatility than now seen and increases the probability of short SQUEEZES and huge run-ups

    Spit or Swallow, CMGI appears to be hanging around for a while. I say why not let it reverse split and see what happens?

    Have a nice day

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    • I say reverse splits have been, are now and always will be for stocks that are losers and I don't think CMGI qualifies for that label. This company is restructuring and seems to be recovering rapidly in spite of a lousy economy. I say let it go as is and I think the stock will recover without the necessity of a r/s. I know some of you people will point out the exceptional stock which has succeded with the r/s but if you do a thorough a research you will find many more instances in which it was the KIss of Death. We don't need it now and I don't think we will need it to maintain the Nasdaq listing long term. No need to rush any decisions at this time.

    • If you think reverse splits are good take a look at some history. All the ones that I have been involved in have lost me a lot more money after the split. Perhaps reverse splits are not only a sign of weakness, but also indicate that the Company is on the ropes.

      The most recent reverse split that has happened to me is RAZF. Take a look and see how well that worked. A real disaster for shareholders. If CMGI splits, I will wait for the price to drop substaintially before buying any more.

      If we can avoid a reverse split, we should.

    • 1. A reverse split will cause a lot of people to lose a lot of money.
      2. say you have 5000 shares at a cost of $25.00--A 10 to 1 RV will give you 500 shares at a cost of 250.00.
      3. Which is easier to make $25.00 or $250.00.
      4. I believe CMGI will within the next 2 or 3 years go beyond the $25.00 mark But will not for a LONG time ever get back up to $250.00
      5. Nuff said from me.

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