Southern Pacific Resource Corp STPJF

RE:RE:RE:RE:RE:RE:RE:RE:RE:wait

[monzie]

wittmann wrote: Back to reality.If I may now  honestly and sincerely offer my 2 cents.I have a few penny gambling stocks that initially werent that way.Just like STP they all held early promise but went bad for a number of reasons.IE,mql,com. ylo are some examples.Some were (are) oil,some pharma..etc.
Anyway they all still survive, but all went for a reverse share split in order to do so.Any shareholder that had shares when the reverse consolidation occured simply put,lost their shirts,and underwear for that matter.Stigmas go with this action that is tough to shake.However when one buys the shares after the consolidation ,then in these examples one would have made money .It all depends on how many shares are exchanged,and how much they will be at face value after the consolidation.It will depend on the company itself ,and its future prospects of course.With YLO the business model changed,IE needed (needs) money,Mql merged companies and renamed,com just parted ways with it partners and found new ones.
It appears as though we have some  investors here  that are new to this phenomena,because of some of the questions raised.The fact is every company's circumstances are different so one co's solution isnt a sure fire fix for another.Noone and I mean NOONE here can answer all the questions accurately.So despite my joking demeanor sometimes,I am dead serious now and can only relate my personal experience.
If this post can clarify anything for anyone...then I'm content...if not ,well,its back to tongue in cheek humour.

And the flip side to those outcomes are companies like Pier 1 Imports, Sirius Satellite, Rite Aid, Air Canada (the 2nd time around).  All these companies were also on the brink of bankruptcy or atleast that's what investors and the market assumed and thus they were all punished in the stock market.  The bottom line is you're right every company is different, so there is no way of predicting what will happen.  And by the way for all those stocks you mentioned, people that bought around the bottom didn't lose their shirts - yes if you bought them when they were much higher you lost your shirt in the restructuring but the reality is not everyone had the same average price as you seem to think they did.  So no any shareholder that had shares when the reverse consolodation occurred did not lose their shirts, alot did sure but not everyone.  Heck I know I've given the YLO example before, but when you include the warrants it is currently trading at about 12 cents pre consolodation prices - YLO dropped to 2 cents before the consolodation and was below 12 cents for the majority of 2012 that's a 600% gain from the bottom- so please tell me how those shareholders lost their shirts.