So when does a reverse stock split make sense?  D

So when does a reverse stock split make sense?  Do not believe the negative hype on the other board that a reverse split should be avoided.  A reverse split from a position of strength in which sales revenues are coming in is not necessarily a bad business strategy.   Cheers!

It makes sense when you have a small company like Marathon Patent Group, a company that offers investors a repeatable business cycle with exponential growth, strong underlying fundamentals, proven producing assets and a highly scalable business plan. With low overhead and tremendous earnings leverage that should increase as operating cash flow funds new patent acquisitions and additional licensing campaigns, institutional investors could soon flock to the name. Marathon affecting their reverse split opportunistically opens the door to the approximate 80% of the investment community previously precluded from investing in the company while trading on the OTCBB. Marathon Patent Group now has both a capital structure and currency more commensurate with both the company it has become and the fundamentals that underlie it.

The reverse stock split will reduce the number of shares of issued and outstanding common stock from 65,858,810 pre-split to approximately 5,066,063 million post-split.

Some good examples of companies that have done very well after a reverse split are American International Group ( AIG ) and Coeur Mining ( CDE ). Both had more than doubled within months of doing reverse splits and serve as good examples of companies who have seen dramatic increases in shareholder value because of it.

It’s my expectation that Marathon Patent Group will soon enough follow in the footsteps of companies like these whose ultimate value was strategically unlocked at the hands of a well timed and well executed reverse split.