Three for the Price of One!

Today, we thought we would give you three for the price of one! Sometimes our questions are answered directly by the experienced person in that area, so we wanted to share a few of those with you.

Dear Ask 3 Guys,

I heard recently that the company I work for is going to do a reverse stock split (RSS). I currently own approx. 10,000 shares and the stock is trading at about $2.50/share. My question is should I buy more stock now while its low and can afford it or should I wait until after the RSS. I know that after the RSS the price will be much higher. Or does any of this really make a difference since the value of my shares will not change.

Thanks, I look forward to your thoughts.

Regards,

Eric in Boston
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Dear Eric,

In the whole scheme of things, it really doesn't make a difference because you are DCA (dollar cost averaging).

Companies normally do a reverse split for one reason - to raise capital.

A company with a low stock price and high PE (price to earnings) ratio - like your company, I am guessing - normally does it because they are struggling and need cash flow. Ideally, this is not a company that I would want to own more stock in. Do your homework, and if the numbers look right and the investment is minimal, take a chance.

A company with a high stock price and low PE ratio does a reverse to lower their share price, attract new investors, and raise capital.

I suggest you watch CNBC everyday for about an hour. I leave it on while I am getting ready in the morning for work. I don't catch everything, but you would be surprised what you can learn.

Good luck to you.

--Victor

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Dear Ask 3 Guys,

I have a friend who does not believe in God. I really don’t want them to go to HELL!!! What should I do. I have known this person for a very long time, I really don’t want to see them burn!!! What should I do?

Concerned Comrade
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Dear CC,

I being of agnostic belief will answer this question with the assumption of being a believer of the christian doctrine. I will assume it's a christian belief do to the region (America) of the question-- as we all know religion is strongly regionalized. The answer would clearly be different as each faith has its own guidelines. Buddhist or Hindu would just let him figure it out generally speaking. Your god on the other hand could be testing you like he did Job. Your god might have a plan for your friend as we cannot understand his reasoning, for example why would he allow a baby to die, why would he create Satan, why ,with your god claiming all knowing, would he put the tree of life in front of Eve knowing she would eat of it, why would god allow Satan to roam his creation with torment and destruction when he has the power to stop him, why would your god send his son (Jesus) with the most important message ever to mankind and not have Jesus personally write his message down. None of this makes sense to a lot of the population. As you can see god's plan and picture is way larger then just your little knowledge can contain. You must just have FAITH and trust that your god with protect you and your longtime friend. Keep up the prayers and witnessing as you lead by example for your friend.

--Ronnie

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Dear Ask 3 Guys,

I really find myself getting mad at my friend's boyfriend because of the way he is with her sometimes. I feel that he is disrespectful to her, and he treats her like she is going to run off with some stranger. She is hot, so she does get attention sometimes, but I don't think she would ever be unfaithful. It really bugs me, and I just want to put him in his place.

Angry Amiga
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Dear Angry Amiga,

Here's what I think. People choose their mates based on the connection and/or attraction that they have to them. I find that the best advice I can offer to someone that is concerned with someone's relationship is to STAY OUT OF IT! The worst thing that you can do is to bash her boyfriend when she is venting about him. Remember... she is with him for a reason-- even if it doesn't make any sense at all to you. Part of us wants to step in, but the best thing to do is let them work it out. Judge your friends based on their actions towards you. Does his behavior affect you? Everyone deals with issues in relationships. It takes sacrifice and toleration to make one work, and none of us are perfect. So, don't base your entire perception off of a snap-shot.

Be there for your friend if she needs your advice or help, but, other than that, their business is their business.

--Eddie

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