Actually when you think about it, it matters not how many shares outstanding are on a stock. The real # when looking at a stock is market cap. However when you go to buy a stock and you see two million shares up for sale at a half cent higher than your bid, investors get that sinking feeling. How is this stock ever going to go up in price with all those shares up for sale? You see its all about investor perception. Lets take the example of SPQ it has 300 million outsatanding shares when you look at market depth this morning you will see there is 370k shares for sale at $.115, that is a lot of shares that need to bought up before it can move up to the next ask price of $.12, where there is over 1.2 million shares for sale. If SPQ did a 10 for 1 reverse split there would only be 30 million outstanding shares and the share price would be $1.10 its just much better to look at for investors will lower amount of share that need to be bought or sold to move to the next share price level.

Al