Nuvo Pharmaceuticals Inc MRVFF

RE: RE: RE: RE: Reverse Split

[Montrose2]

I don't see 100 to 1 reverse as being very likely.  Taking the stock to 27.00 is just going from one extreme to the other.

A 10 to 1 split would see a current price of 2.70 which is above the 2.00 threshold that many, many fund holders utilize.

The issue really becomes whether or not the company goes "back to the well".  If they start raising capital by further share sales then the dreaded dilution spectre surfaces and once again we could see serious decline.  If however they are able to show profitablility annnnnnnnnd sustainability then there would be potential for appreciation no matter what level the share price is or how many shares are outstanding.

I continue to personally believe that once Covidien gets a firm view of how marketable Pennsaid is they will be looking to take the company over.  I see it being essentially "held" at the current levels so that any takeover bid could be in the .50's or .60's which could be presented as a substantial percentage premium on the current price.  That type of action would not be well received by some of our long, long term participants but would allow perhaps the majority to depart with a reasonable albeit diminished profit on the exercise.

Onward and Upward