R/S good or bad
posted on
May 29, 2008 10:11AM
I have dabbled in the penny stock pond for over 30 years and have seen more than a few Rev. splits. First, I would like to say that of all the companys I have invested in over the years- maybe 10% have made me money. Not always the fault of the company but some times my poor read of the world. In fact, my daughter , who is an investment advisor with more letters after her name than in her name suggests that I call her when I sell so she can place a buy order. R/splits usually, but not always, mean the company is in trouble. They have little or no cash, the claims are not proven and investors have lost interest. With a R/split things change, options and warrants that were worthless now become something to take to the bank ( company officers & directors banks ) and maybe a bonus or wage increase for the same hard working folks. I feel spq is not in that group- they have cash, they have great prospects, they have management that cares. BUT- historically , in my experience, the shares, unless something worldshaking happens, slowly reverts back to the original. Therefore, I will vote against a Rev./split