Re: 5 to 1 consolidation is a good thing for the long run.

Aiming to become the global leader in chip-scale photonic solutions by deploying Optical Interposer technology to enable the seamless integration of electronics and photonics for a broad range of vertical market applications

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Babaoriley

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Re: 5 to 1 consolidation is a good thing for the long run.

in response to

Re: 5 to 1 consolidation is a good thing for the long run.

Strategic Trader

posted on Jul 12, 2014 07:29PM

ST, you wrote: "Should the "shorts" as a % of float get too high, the company can execute a reverse split which will "call in" all the shorts and "clean the stock'"

I can't follow this. If I'm short 10,000 shares of POET and the stock is at $2, and they do the reverse split, I will then be short 2,000 shares of POET, which should be trading at $10. Please explain the cleaning part, it makes no sense to me. The longs will have their 10,000 shares "called in" and they will not have 2,000 shares.