There is one sure way to avoid a reverse split if
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Posted On: 10/05/2017 1:54:12 PM
There is one sure way to avoid a reverse split if the possibility scares you.
Sell before the reverse.
When I first came on this board months ago and purchased my first block of RMHB it seemed to me that only a reverse split would be able to qualify this stock for any of the big boards.
I said as much and was accused of bashing the stock.
So here we are. Everybody talking about the inevitable reverse split.
There's nothing wrong with the company or the product. The fault lies with the caliber of investors in this company.
Many are obviously in over the financial heads and running scared, and still more flip their stock on any sign of an upward movement. They lack the fortitude or smarts required to be patient and look towards the future.
We've been seeing this happen for the past few weeks. The stock begins to advance and when it slows, the insecure share-holders sell trying to catch it at its highest point.Today is a perfect example. The stock rises to .034 and is quickly bashed down to .03.
The only way to purge this stock of wishy-washy investors is for it to make a sustained rally that does not collapse and can be sustained. This way these so-called investors will have their shares swept up and will never be able to get back in without paying a premium price.
With a 1 for 100 share reverse split, two million shares would become 20,000 shares.
That is more or less figured on four cents a share.
If the stock is worth eight cents at the time of the reverse split, the 1 for 100 becomes 1 for 50 to achieve the same $4.00 valuation. If the stock could rise to 25 cents the ratio to reach a $4 valuation would be 1 for 16.
This is what we have to hope for. We need the stock price to rise as much as possible before any reverse split happens.
Unfortunately, most companies seem to enjoy doing their reverse split when a share price is at its lowest ebb. So much for caring about the investor.
Anyone who thinks that their one million shares is going to be worth one million dollars when this stock hits one dollar, is dreaming. Just where do you imagine that money coming from? Plus, do you really think you are the only one with a million or more shares?
As things stand, we can't go up three tenths of a cent without some loser dumping their stocks and driving the Stock Price back down. How in the name of all that's holy with the stock ever reach a dollar under the current
structure?
It would take an astronomical, sustained jump to have any hope of ever reaching a dollar(or even 50 cents)without splitting the stock.
Just watch. On great news this stock will jump to five or six cents, and as soon as it takes a breather, the price will be driven back down again.
As I said at the beginning of this post, if you fear a reverse split, sell before it splits........because it's coming. You will no longer have a million or more shares.
If RMHB has any hope of making a big board, a reverse split appears to be unavoidable, and the only way to achieve this lofty goal.
Unfortunately, most companies that opt for reverse splits have little confidence that the share price will rise sufficiently on it's own. I believe this is what we're now witnessing with RMHB.
Your investment dollar value stays the same, but the big question is, will the stock go down or up after the split?
If you are confident that the stock will rise onward and upward from it's new split price on a big board, then you have nothing to worry about. You will make money on your investment.
If you have your doubts, there's not much point in holding onto your stock.
This is a decision each investor has to make for themselves.
Sell before the reverse.
When I first came on this board months ago and purchased my first block of RMHB it seemed to me that only a reverse split would be able to qualify this stock for any of the big boards.
I said as much and was accused of bashing the stock.
So here we are. Everybody talking about the inevitable reverse split.
There's nothing wrong with the company or the product. The fault lies with the caliber of investors in this company.
Many are obviously in over the financial heads and running scared, and still more flip their stock on any sign of an upward movement. They lack the fortitude or smarts required to be patient and look towards the future.
We've been seeing this happen for the past few weeks. The stock begins to advance and when it slows, the insecure share-holders sell trying to catch it at its highest point.Today is a perfect example. The stock rises to .034 and is quickly bashed down to .03.
The only way to purge this stock of wishy-washy investors is for it to make a sustained rally that does not collapse and can be sustained. This way these so-called investors will have their shares swept up and will never be able to get back in without paying a premium price.
With a 1 for 100 share reverse split, two million shares would become 20,000 shares.
That is more or less figured on four cents a share.
If the stock is worth eight cents at the time of the reverse split, the 1 for 100 becomes 1 for 50 to achieve the same $4.00 valuation. If the stock could rise to 25 cents the ratio to reach a $4 valuation would be 1 for 16.
This is what we have to hope for. We need the stock price to rise as much as possible before any reverse split happens.
Unfortunately, most companies seem to enjoy doing their reverse split when a share price is at its lowest ebb. So much for caring about the investor.
Anyone who thinks that their one million shares is going to be worth one million dollars when this stock hits one dollar, is dreaming. Just where do you imagine that money coming from? Plus, do you really think you are the only one with a million or more shares?
As things stand, we can't go up three tenths of a cent without some loser dumping their stocks and driving the Stock Price back down. How in the name of all that's holy with the stock ever reach a dollar under the current
structure?
It would take an astronomical, sustained jump to have any hope of ever reaching a dollar(or even 50 cents)without splitting the stock.
Just watch. On great news this stock will jump to five or six cents, and as soon as it takes a breather, the price will be driven back down again.
As I said at the beginning of this post, if you fear a reverse split, sell before it splits........because it's coming. You will no longer have a million or more shares.
If RMHB has any hope of making a big board, a reverse split appears to be unavoidable, and the only way to achieve this lofty goal.
Unfortunately, most companies that opt for reverse splits have little confidence that the share price will rise sufficiently on it's own. I believe this is what we're now witnessing with RMHB.
Your investment dollar value stays the same, but the big question is, will the stock go down or up after the split?
If you are confident that the stock will rise onward and upward from it's new split price on a big board, then you have nothing to worry about. You will make money on your investment.
If you have your doubts, there's not much point in holding onto your stock.
This is a decision each investor has to make for themselves.
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