re: reverse split!There aren't too many investors who like a reverse split. Things generally turn out bad and the longs wind up down big time. IMHO this occurs 90% of the time. The reason it occurs so often is because generally the play is very light or unlucky with exploration IMHO
MGR Resources has completed a R/split some time ago but they completed theirs shortly before the rumblings of economic woes. Consequently, their sp tanked and has not rebounded yet even though the play has a lot going for it besides the fact that it is now a nice tight play.
On the other hand, Spider (SPQ) attempted a R/S but the shareholders put up a fuss at the AGM so the R/S was cancelled. Now look at SPQ. how many shares out? 300,000,000? More? Look at the sp. Spider could have done a R/S and be worth a lot more than they are now. The main reason being their location and the hits they have under their belts. An R/S in this case would have been beneficial to all. Too bad many were led by their noses by a few.
Now lets look at this play. I would compare it to WSR. Both are sitting on a good hit. Both are well managed. They are only doing this to survive and to enable them to get more $$$ for without selling out the company or diluting. Both have or had less than 100 million shares out before the split. Because this play has such a good foundation and because this play has a super hit under its belt, it is my humble opinion that an R/V for this play would do all nothing but good. The one catch is that some investors may be required to buy more shares, especially with a 10/1 R/S.
So what do we have out? 90 some million? Lets say 100 million. 10 to 1 reverse gives the play 10 million shares out. Pretty tight!! So some of us will need to buy more. Big deal. It would cost pennies for 10,000 shares in order to wind up with 1000. At a few cents its a steal.
Things are turning green. Buy your shares now while they are cheap in preparation for an R/V. 10,000 shares cost nothing right now. If it turns out that they do not require an R/V then you have many more shares and the first sign of a double just sell.....:)
have a safe and Happy New Year All
Don