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There are really only two "non nuclear" options: reverse split and share buyback. A reverse can work if it's managed properly but must be done by a healthy company with real earnings and fully compliant. It helps to reverse into excellent news that would normally boost the stock. Pink sheet companies with billions of shares out generally reverse with the announced purpose of creating a price that will allow listing. But the true purpose (almost always) is the elimination of shareholders.
These "elimination reverses" are always deep (1:1000 or even 1:more) but, ironically, almost never deep enough. They always compromise and wind up neither sheep nor fowl still with too many shares, falling like boulders and a bunch of outraged shareholders.
A share buyback is self explanatory and is done from company profits.
Last edited by wechoose; 03-27-2008 at 01:21 PM.
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