RollbackBarley1, I completely agree with you. Liquidity will be hurt. With a little promotion and the news that has been released lately, we could start to see more activity in the stock. In fact the price could slowly move up to a much more respectable level.
If the float is reduce to approximately 1 million shares, this may be a deterrent to many prospective investors, which will hurt liquidity.
It was never a rollback that bothered me. It was the size of the rollback. It did not make sense to me when it was announced and it is even more preposterous now, with the sort of great news the company has been releasing. The stock could ctually start to move higher, giving long standing investors a chance to recoup tehir investment and hopefully make money.
I don't understand the argument "to clean up the shareholder base". What does that mean? Why is it important?
I have spoken to quite a few people in the investment community about the size of the roillback and theyall shake their head in amazement. Even smaller rollbacks result in putting pressure on the stock price. I cannot imagine the pressure a 100 for 1 would exert.
Management did explain to me that they simply got apporval to do the rollback. It does not mean they have to do it and it does not mean they have to do 100 for 1. They could change the size of the rollback or not do it at all.