CBAI - To Reverse Split Stock Leaving Shareholders With 1 Share for Every 500 They Have Purchased

Anyone that has read this blog for the last year would have been able to see this coming. CBAI has had a couple of good runs, but in the end shareholders will end up, as usual, getting the shaft.

With almost 6 billion shares outstanding, the reverse split will send that number to 12 million. The lone bright spot is the reduction to 100 million authorized shares, of course that can always be revised upward if/when the company reaches 100 million outstanding. This should come rather quickly judging by the company's history.

Here are some of my blog posts on CBAI

http://pennystockgurus.blogspot.com/2010/01/cbai-company-losing-2-million-per.html
http://pennystockgurus.blogspot.com/2010/01/cbai-outstanding-shares-growing-at.html
http://pennystockgurus.blogspot.com/2010/01/cbai-losing-over-2-million-quarter.html
http://pennystockgurus.blogspot.com/2010/01/cbai-run-is-over.html
http://pennystockgurus.blogspot.com/2010/01/cbai-guru-called-top-on-january-5th.html
http://pennystockgurus.blogspot.com/2009/12/cbai-sell-sell-sell.html
http://pennystockgurus.blogspot.com/2009/12/cbai-another-840000000-shares.html
http://pennystockgurus.blogspot.com/2010/01/cbai-ready-for-its-big-fall.html


I pretty much nailed in on the head in each post. Maybe this reverse split is the start of new things? Maybe they won't dump relentlessly into the market. Either way current shareholders will be holding onto a heck of a lot less shares after this 500 for 1 recapitalization.