@ddsimiyu:
I have 1,000 shares of SCOM today. If they pay sh0.50 dividends (this is completely not possible in the near future; not with EPS of 0.35; but I'm using it for argument's sake since it's the figure you mentioned),I will get a cheque of sh500 (0.5 x 1,000).
Now,if we do the 'reverse-split' as you propose,I will have 100 shares. The dividend will be sh5 per share,so I will get a cheque of sh500 (5 x 100).
Now how is the second method easier to pay than the first?
SCOM's price is depressed by the fact that there are too many shareholders (and a big fraction of them bought with borrowed money....they are feeling unable to re-pay their loans and are selling at any price to remedy the situation.)
Secondly,with an electronic register (CDSC) it is equally diffult to distribute 4b shares as it 40b!
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.