Mega Brands Inc MBLKF

RE: reverse split in june?

[FFHWatcher]

The quickest way for the share price to double is to do a share consolidation. <that was humour>

I think it has to happen.  300M or potentially 500M+ shares outstanding is a bit stupid for a company this size.  99% of shareholders who voted, voted in favour of this proposal so I don't expect a mass exodus to occur.  However, we all know and understand that no one likes a reverse split.  In the long run, it is the right thing to do, as was the recapitalization.   

There seems to be very few shareholders exchanging shares.  Lots of shares but very few shareholders.  800k share days would theoretically become 80k or 40k share days.  I believe the reality is, it may take a lot longer to get more depth in the liquidity if stay at status quo.  Maybe bite the bullet, do the consolidation and move fwd. 

In the end, performance is all based on MB turning their finances and business around.  They certainly seem to be on their way.  I suspect that if they had a good quarter than they will move fwd. with the consolidation and make an announcement at the next quarterly report release.  It is possible that the market views this as a possible vs. as the death kiss (ie. Nortel, etc.).