Post by
woundedknee on Nov 06, 2010 7:36am
last comment for tonygtx
Let's stick with 60 cents for easy figuring. Mb reverse splits..one for ten... and is now 6.00. If you had ten thousand shares pre split you now have 1000, but your dollar amount is the same. It has been my experience with reverse splits that the stock will go down(not always) in the first few days. If it drops 60 cents that is only 6 cents pre split. Dollar amount still the same. As in the case of MB most of us here all believe this is a turnaround story and by shares now being at 6 dollars they are eligible for large fund managers to buy this as part of the fund's holdings. A huge advantage and if MB truly has turned around the stock could easily jump to 10 dollars. This is all hypothetical of course. On the other side, I have seen reverse splits fail miserably, and the stock price falls to where it was before pre split. A total disaster. But it is very important that you do your own DD on these stocks and be comfortable with your decisions. If you like this stock and are not comfortable just buy a few shares and add to it later(or exit) as you see how the stock is performing. Cheers
Comment by
tonygtx on Nov 06, 2010 12:48pm
All i'm doing is just informing the people who did not know about the RS and i know 90% of the people on here didnt have a clue they approved it.....do what you want i know what im doing