posted
I just been hammered with the news of reverse split on the LSTA it is at .0001 and split is of 1000's reverse. I just want to know after reverse split the price do tank any chance for this sucker to go up?
Posts: 143 | Registered: Feb 2004
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If the company has 1 billion shares and wants to reduce it, they do a 100:1 reverse split... so the 1 billion is now 10 million shares. If you had 25 million shares, that you bought at .0001 those shares are now 250k shares, however in theory if the market is large enough, the price may raise however, it is normally seen in a negitive light... but there are cases where the prices have stayed up and was to a benefit. However don't qoute me on those stocks right now,lol...
-John-
Posts: 759 | From: Long Island, NY | Registered: Dec 2003
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posted
Penny pincher is 100% right, however may I add there are some stocks which will do a reverse split than dilute more, bringing the price down again, reverse split, ect...
I'd say if the reverse split was a 1:2, 1:3 I would be able to handle that but when you here 1:1000 or even 1:100 it is spelling disaster, in my opinion...
-John-
Posts: 759 | From: Long Island, NY | Registered: Dec 2003
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posted
Tanangel, John is right, there have been some cases where a reverse split is a positive but to be honest, damn few. Typically the pps does nothing but tanks after the r/s right back down to it's pre split level.
Posts: 5729 | From: Wisconsin | Registered: Sep 2003
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posted
JB is right again, what you have to look for is whether they are reverse splitting the o/s only or the o/s and the a/s. If they only reverse the outstanding and leave the authorized unsplit so to speak, that usually spells disaster. What they do is split the outstanding down to a few million, leave the authorized in the billions, and then dump shares until they run it right back up to the authorized amount. Then the whole process starts all over again.
Posts: 5729 | From: Wisconsin | Registered: Sep 2003
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posted
Tanangel, Just read their filing, not good. They are taking the outstanding down to 2 million or so and leaving the authorized at 10 billion. In my opinion, there's no hope now. This is the next AFRT, GWAD, etc. Get out if you can before the split.
Posts: 5729 | From: Wisconsin | Registered: Sep 2003
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posted
Thanks guys What I was wondering what to do should I get out know and take huge loss or wait till after split, LSTA will flood the market after the split I already know that I am just wondering how much and how bad the price will change it is at .0001 since it is 1/1000 is the price also going to go to .1 or not.
They mentoned in the Split that share of 2,000,000,000,000 will turn into 2,000,000 so if iam holding 5,000,000 shares that will turn into 5000 shares at the price of .1 I make money or am I doing this math wrong?
posted
Tanangel, I am getting out now at whatever cost. The simple answer to your question is this: if the reverse split is 1 for 1000, when it happens, take the amount of shares you have now and divide by 1000. That's how many you'll have. Then take the price per share and multiply it by 1000. That will be the new per share price. The problem is that it will go down big time right after the split. Using Gateway Distributors as an example, they had I believe a 1 for 900 reverse a month or two ago. On the day of the split their new pps was .19 per share. Today it is at .0002. Even though it hurts, you should take the loss and move on as soon as you can otherwise your holdings could be reduced to nothing.
Posts: 5729 | From: Wisconsin | Registered: Sep 2003
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posted
If a company merges with another company but is doing a reverse split, is that considered a bad thing?
Posts: 65 | From: Jacksonville, Fl | Registered: Apr 2004
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posted
No, i mean a company is going to merge with another company and then the stock does a reverse split. I'm asking becuase this is the word that ARII might do after the merge.
Posts: 65 | From: Jacksonville, Fl | Registered: Apr 2004
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