[jimjamuser]

Originally Posted by CoachKandSportsguy

Ah, reverse splits. .. a friend of mine worked at the GE hqs in accounting, and would relate to me the issues with their accounting. He was let go due to finding too many negative issues in the accounting, forcing restatements for errors in accounting treatments.
Yes, they were cooking the books to keep the stock price up until the house of cards collapsed. The type of accounting is easy to manipulate for revenue, as service revenue under certain revenue recognition methods are highly subjective. Not the same as with product revenue where a unit sold has a price on the transaction.

So many mutual funds have limitations of the minimum dollar price for a stock to be purchased, as if the price per share indicates the quality of the stock. It does in a general sense, but there are always exceptions. Therefore when former blue chip companies collapse, they often have to perform reverse splits to maintain certain investability, as well as to minimize dividend cash flow hits with a minimum dividend. Maintaining a dividend has certain investment quality assigned, but if you look at large cap history,very few companies remain in the Dow Jones and the SP500 forever, as they lose to innovation, and make mistakes whereby competitors take advantage and surpass them.

Also, you might believe the fallacy of stock buybacks, and if you want to understand the fallacy, as I have been a beneficiary of them, you can search on my user name and find my explanation of how stock buy backs is really mgmt personally getting their hands on the cash within the company without paying any taxes. . . there are examples of very large blue chip companies have executives looting the cash balances through the stock buyback executive incentive programs with stock grants. . .

So you won't find these explanations from supporters of corporations and their plans, but you will from certain very critical of certain leaders with very credible evidence. . . there are also some finance theories which make sense, but are also abused in reality, as well as don't scale well from theory to reality.

finance guy

People have said that about me - that he "doesn't scale well from theory to reality"! Nevertheless, I was EXTREMELY impressed with the GREAT information in your thoughtful, thought-provoking post. Double KUDOS for that one!