(Total Views: 457)
Posted On: 09/10/2021 5:31:47 PM
Post# of 153915
Does everyone understand why a reverse split is almost always disastrous for a company?
When a company does a reverse split to take the share price above 5, it makes it EASIER TO SHORT.
Those of us who have observed reverse splits in other OTC companies have seen this happen time and time again. First people scream and yell on lieHUB about how the company should do a reverse split to get the share price above 5 "so that funds can buy it" -- which they NEVER do.
THEN, the shorts pile in, because they weren't allowed to short low-priced stocks before, but now that it's above 5 -- have at it.
And then the stock gets driven right back down to the PRE-reverse split level.
WHEN SOMEONE SAYS THEY WANT TO DO A REVERSE SPLIT, YOU ARE GOING TO GET SCREWED.
Say, who was it that was talking about a reverse split on a conference call?
When a company does a reverse split to take the share price above 5, it makes it EASIER TO SHORT.
Those of us who have observed reverse splits in other OTC companies have seen this happen time and time again. First people scream and yell on lieHUB about how the company should do a reverse split to get the share price above 5 "so that funds can buy it" -- which they NEVER do.
THEN, the shorts pile in, because they weren't allowed to short low-priced stocks before, but now that it's above 5 -- have at it.
And then the stock gets driven right back down to the PRE-reverse split level.
WHEN SOMEONE SAYS THEY WANT TO DO A REVERSE SPLIT, YOU ARE GOING TO GET SCREWED.
Say, who was it that was talking about a reverse split on a conference call?
(8)
(0)
