RE: RE: RE: Very Interesting!Reverse splits usually have a negative effect on share price an overwhelmingly high % of the time. It's a HUGE red flag for the retail investor. I can see why STG might want to get the share price higher (i.e. to attract funds who can't invest in penny stocks, to facilitate a move to the big board, etc.), but as noted by floyd3 reverse splits artificially inflate prices and almost always see the shares drift lower post split.
I do think the reverse split is a foregone conclusion...DH would of course support it, or they wouldn't have written in the .08 vs .10 strike price of this preferred share issue.
But until we see some revenue numbers from all these announced shipments *no one* can accurately gauge how this company is actually doing financially. I have NO idea what, if any kind of profit margins we are achieving. Now we can add the uncertaintly of a possible reverse split (and even if I think it will happen I know not when it will happen). And since the ONLY concrete positive for STG I can tangibly judge right now is the continued financial support of DH I'm not surprised we are currently at .055 on the bid, a multi-year low, and close to an all-time low.
Happy holidays, all.
El Joro