Lately, there's been some doom and gloom sentiment expressed over the possibility of a reverse split. From the webcast today, the possibility of consolidation has probably become likelihood. Doesn't mean the doom and gloom has to accompany the move.
It takes a minimum $3 share price to list on Amex, so we're looking at 10-1. Is it worth it? Yes.
1. Doing this after YNG has completed the turnaround and demonstrated stable profit and growth, will make the stock more attractive to institutional investors -- no stigma of "penny stock."
2. The stock can be judged on current fundamentals rather than just potential (and negative history). It's not enough to be solid, but the company must also be perceived as solid.
3. The stock is less likely to be as volatile -- less of the day-trading/speculation found with penny stocks.
It would be a different story if the turnaround was just being planned: A reverse split would be disasterous.
We're in better shape, a totally different situation, as the turnaround is nearly complete.
I think they're doing everything right. They've set the table nicely.
Here's the flip side: I should probably be writing a lot of doom and gloom to scare off as many investors as possible, so I could pick up more shares as cheaply as possible. We can probably expect to see some of that game, just not from me.