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Inovio Pharmaceuticals, Inc. Message Board

  • elcaribes elcaribes Mar 28, 2014 1:07 PM Flag

    Here's the deal.....

    Here's the deal for all of you who do not understand what's going on..... Let's take a look - if approved - of the purpose of the reverse split.

    Reverse splits are perceived to have a negative connotation. That's true for stocks priced in the pennies trying to get their share price above $1.00..Most of the time these stocks have been setting new 52-week lows.For Inovio Pharmaceuticals, it's exactly the opposite. INO has been setting new 52-week highs and will likely continue to set new 52-week highs. Managemet probably wants to get their stock price above the $10 level and they figure the quickest way to accomplish that task is via a reverse split.Once above $10 large pension funds will become buyers.

    What does the record show ? According to a report of a couple years ago released by Cleve Rueckert, Birinyi & Associates, 14 stocks within the S&P 500 since 2000 initiated reverse stock splits to make their shares more attractive to institutions. Of those 14, twelve were higher one year after the effective date of the reverse split, two were lower. The average gain was a gigantic 62.55%.

    Time Warner Cable (TWC - $134.05) initiated a 3-for-1 reverse stock split on March 30, 2009 and since then TWC shares are up 346%. Well informed investors know what's going on. The intent of management is to make their shares more attractive to LARGE PENSION FUNDS. INO has been setting new 52-week highs for the last 18 months and the chances are highly likely (after the revers if initiated) that it will continue to set new 52-week highs. With a shareholders meeting of May 22, who knows - INO may already be priced at $10 and the reverse will be a moot point!!

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