Re: Reverse Split /Good or Bad for SPQ - Cylinder
in response to
by
posted on
Jun 02, 2008 03:28PM
First Explorer at the "Ring of Fire" and presently drilling on the "BIG DADDY" Chromite/Pge's jv'd property...yet we were robbed
Sorry! Forgot to do the paste.
Here it is.
Cylinder wrote:
"Spider is a junior company with a pile of shares outstanding. A 10:1 RS will reduce the number of outstanding shares to about 30 million. This makes the shares much more scarce, which should lead to smaller trading volume. This reduction in volume should detract the day traders, who act like vultures when they see a penny stock averaging a million shares a day. This should keep the SP steady.
On the flip side, a news release will attract more buyers. With fewer shares available, the SP should actually see gains upon release of a NR such as our early May one."
Old Joe