Reconnaissance Energy (Africa) Ltd V.RECO

Why Recaf were will go to $5 sooner than later!

[pacer001]

The answer is simple. We don't even need a gusher.

In order to be traded and bought by some larger entities a stock needs to be at $5 and higher per share.

The easiest way to accomplish this is a "reverse split" where every new share now becomes like lets say 5 old ones. Now bottom line it does not immediately increase one's value but over time it can lead to it as more buyers are enticed to buying higher priced shares. Over the years this has happened to some of my holdings.

[bonjovi501]

bad idea...........

[cyrustg]

TERRIBLE IDEA That would just be a present for the shorts. In my experience , those reverse splits end up being the end of the road for the companies. The shorts know the companies are in trouble and smell the blood in the water and pile on.Everyone's investment goes down,down,down (except shorts). You either believe in the company or you don't. We just have to hang tough until the next

[pacer001]

Cyrust, I am not big on these reverse splits either but they usually are done because they HAVE to due to exchange requirements and/or large institutional investors requiring it. 

[pacer001]

Again why we have to go to $5. From the web; "Stocks that trade below $5 are considered by Wall Street to be "penny stocks." These oft-derided, decidedly risky equities are populated by both illiquid, unlisted, wildly speculative "lottery ticket" companies that trade over-the-counter, and reputable companies that are either just beginning to grow or have perhaps fallen

[Angus66]

Have to agree with other responses here. A reverse spilt would be a negative for the company. Lets leave well enough alone and wait for good news to raise the SP. JMHO

[cyrustg]

The stock wouldn't be $5.00 for  longer than the first trade after the reverse split announcement !! The shorts ould be salivating when the company makes that press release. It would only give them more room to drive it down . It will only lessen our investment and we will still be under $5.00. Besides , I'm sure the big companies would see right through the scheme and probably

[pacer001]

From the web: "Initial Minimum Bid Price for Stock: The stock must have a minimum initial bid price of $5.00, and must later remain at or above $1.00. This requirement serves as a safeguard against certain market activities associated with low-priced securities, and protects the credibility of the NASDAQ market."

[Wynjoe]

We all know a dollar will not hold.DOWN DOWN DOWN this stock will go,where it stops nobody knows. SELL SELL SELL!!!