I feel I need to explain myself before we get started here. Most of the folks who are monitoring this blog will see this as nothing special. Others will just mumble WTF and get on with their lives.

This is for the former...

I attempted to post a response to a post on Yahoo today concerning a company which I have invested. And damned if I found it down right impossible to do so. So here is the response in all its glory.

How infuriating is it to try to respond to a message posted online and find that the company that supplied the message board has made it impossible to do so?  I found that  the words are parsed and sorted automatically, then divined for the meaning of those words based on the aggressiveness of those words. Then the companies cloud decides ...again automatically ...whether the words deserve attention. Once those words are determined to be offensive the entire post is deleted with no notice to the poster. No notice why or how, no notification how the post might be offensive... not even a cursory "fuck you". Yahoo has decided that it is best to treat all posters as though they are dead beats hacking in internet cafes somewhere in the uncontrolled territories. Everyone is from Nigeria, or Somalia or any place else what is notorious for screwing everyone online.

Not  because the words are offensive. But because those words have ticked that sweet spot on the offense meter.

If you hold stock in Yahoo I recommend that you sell as soon as possible because if this is the future of their system, they very definitely need to hire some new programmers.

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"Anyone who understands how to exchange 10 dimes for a dollar bill cannot be “screwed” by a reverse split."

Your argument is half right. Yeah, it is like giving up 10 dimes for a dollar, but unlike before the exchange when the dollar gains and loses value you only get to see profit or loss relative to the solitary dollar vs the 10 dimes. While, yes you do have the same value as before you lose the leverage of having 10 times the shares. It's like putting a throttle on potential profit. It penalizes the investor that has the foresite to buy low.


"If a reverse split triggers a bear raider attack on a successful company, it is a buying opportunity. Two examples of that .in the sector are ERIC October ‘02, and FNSR September ‘09. If a reverse split triggers a bear raider attack on a failing company, who cares?"

I care and so does every other long out there."

"A reverse split is fundamentally a non-event, but E**** large shareholders will vote to allow a reverse split in order to gain these benefits when appropriate:"

Wrong! A reverse split is a huge event and signals a company in distress


"The potential shareholder base will be significantly increased."

Wrong! It will consolidate the holdings in a smaller number of hands.


"Everyone’s transaction costs will be reduced."

Whose transaction costs are those? And please enumerate them.


"Penny stock manipulators will be deterred."

And hedge fund manipulators will be encouraged. I also re-assert that this stock is strong enough to reach the five dollar plus level on it's own. Heck, it traded in the teens not so long ago.


"Share price volatility should be reduced."

Wrong again! Lower total shares can increase the beta. Volatility will increase simply because of lack of supply


"Analyst’s coverage should increase."

Again, who cares? Most of them don't know what they're talking about or their opinions can be purchased. And those that do have an opinion that counts stay away from highly volatile stocks.


"A double-digit share price with double-digit EPS is the norm for big money investors."

There is the first true thing that you have said a reverse will increase the EPS positive or negative to something in the double digits. Remember that knife cuts both ways.

Having held and sold through several of these BS shareholder screwjobs (also known as reverse splits), I understand intimately what kind of damage that this will do to the share price and the shareholders in general. JDSU had over 1 billion shares outstanding before the reverse and still has 231 million shares outstanding, three times what E*** has. E*** has room to grow without this sledgehammer in their toolbox.

Vote NO!

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Can anyone tell me where I went wrong?