posted on
May 30, 2008 02:53AM
Reverse splits are practically always very bad for junior stock. As you said, the price eventually reverts back to the old, thus wiping out the pre consolidation shareholders. Rationally this should not happen, but almost always does. I have laways held Novak in high regard, but in this instance I do not think he is doing the right thing. Obviously he received bad advice. Let's hope enough shareholders vote "No" to this proposal.