Please grab your ankles and bend overr while my friend BUTCH THE JANITOR gives you an "examination". HE LOVES PEOPLE LIKE YOU STUPID DOLTS! Do any of you even know what a reverse split is? A split, whether forward or reverse NEVER has a material effect upon shareholder value unless new shares were created. Do any of you realize the absolutely POSITIVE BENEFITS OF TODAYS ANNOUNCEMENT? In an unusual moment of sympathy for the stupid, I have decided to list them below. (you can thank me later)
1. The reverse split eliminated the imminent threat of being delisted from the Nasdaq Capital markets. Had that happened, I can assure you all, it would have had a most detrimental effect upon the market cap of the company's shares.
2. The reverse split CONDENSED the shares outstanding and the float by 83.4%. Thats right, we will have gone from 130 Million Shares outstanding to just under 22 million shares out. (This means the exact same leverage will be applied to your portfolio as the good news rolls in).
3. By using a 1 for 6 ratio, the shares are priced at 6.80 using todays close. This is particularly significant in that the shares are now within access of hedge and mutual funds that were previously prohibited from taking possession of shares trading below 5.00 ( a common threshold)
4. By adjusting the price per share above $5.00, the stock is now marginable in virtually all financial venues, in effect doubling our exposure
5. At prices above 5.00 and at the companies discretion, a market can now be offered for the sale of call and put options. This adds additional liquidity and leverage. This can compound the effect of any news dramatically.
6. ONE MORE TIME: THE VALUE OF THE SHARES IN YOUR ACCOUNT REMAIN EXACTLY THE SAME (Unless a legion of morons dumps their stock at losses because they "just dont get it".
7, WHAT HAPPENED TODAY WAS A GOOD THING!
Sentiment: Strong Buy