Mega Brands Inc MBLKF

RE: Ok why are we talking reverse splits here?

[doctor333]

That's right...no mention of it this quarter..it's older news.
Splts are purely an accounting issue....with the upside of Institutional investors being able to buy.
For example, with a 1:20 reverse split, a
.50 stock would equate to $10. There is no reason why a
.50 stock that goes to $2 cannot equate to a $10 stock going to $40.
From a financial statements and accounting point of view, the value of the company doesn't change. The big money knows this.
This is a more common concern/perception amongst the retail investor.
If one plans to be a long term investor...know the balance sheet, study the income statement, look at the capital structure between debt and equity, etc.