RE:RE:RE:RE:Short selling around a reverse split 859
Like I stated previously that there was no reason to do a RS to entice institutions to buy in unless there was something else in the works. Still there may be but the harm has already been done. Almost a 50% haircut since their intentions were announced in March. For those who are longs..IMO does not change much but short term..OUCH> But also gives an opportunity to the longs to either average down or add.
I am still waiting for this to pass to build back any position as before either for trading or holding.
Congrats to L!! and bago the 2 baccalas for their knowledge of how reverse splits work and their marvelous timing on spinning the market wheel of fortune. .
Bago considered it a nothing burger when i mentioned this and for L!!... if this was a TURD before , I have to wonder what he will coin it now.
BTW,,859
I sent Richer an email asking him if managemnt still thought this was a good move especially at this time as the signs were all there. Were they duped by the institutions because they did mention that was the reason for it, I asked.
we'll see..still can't believe they did this as stand alone but playing it safe was the best course IMO.
BBDB859 wrote: Hey Club. I gotta say it. I'm dumbfounded with this outfit. I mostly feel dumb for even averaging down, now that I see this happening to the SP. If they don't have a game plan, and the shares keep nosediving down, I'm just going to laugh at this outfits actions from now on. Then the only conclusion I can come with is, that they wanted to Erode the Shareholders first, and buy the SH's shares back, at PENNIES to the Dollar. What else can you conlude from this R/S???
clubhouse19 wrote: EM
IMO he gave all bogus reasons for the RS as share price has nothing to do for a reason around a reverse split. market cap does though, and that was far from the issue here. IMO he cud have done a 1 for 10 for the same reason of institutional interest.
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In fact it increase volatility and negative market perception but for sure I thouight something else was in the offing with this .He could have been duped by the institutions who may be vying for a financing deal...he wouldn't ne the first.
But like you said, I presume he had savy consultants around him.
balmusette wrote: Reading this makes you wonder why they have taken that road and if they have consulted advisors.