You're right, it's not a near term part of their plan, and it may never need to be, but you're wrong about one thing: it's not always "terrible for shareholders" as you stated. Many believe that due to the high percentage of OTC companies that FAIL.
Failing companies all too often exercise reverse splits to "reset" their stock in an effort to get more shares authorized, so that they can raise more capital for salaries and basic expenses just to keep the lights on and continue to get paid for failing.
This is NOT one of those companies. I don't normally ramble on about other companies on this board, but this is a great time to do it as I have a truly beautiful example of why a RS isn't always a bad thing for long term investors. It's bad for shorts and near term flippers sometimes, if their timing is wrong and they get on the wrong side of the fence.
It's another stock I've been invested in for over a year now. I loaded up at .22 for most of it. Bought some a little higher, but no matter because my average is sweet and it's headed for the moon. The ticker is FUSZD. The stock was just reverse split at a ratio of 1 for 15, and the name has been changed from nFusz to Verb Technologies.
The reverse split was only done to ensure leaving the pirate-riddled OTC behind and uplist to the Nasdaq. Immediately following the split, the stock moved up and has been trading at over twice what it was post split. In other words, NOT sinking back into the sewer like a losing company's stock would do, and the uplist is just days away, where institutional investors will now be able to start buying the stock.
The low float and high demand that's anticipated will surely result in a bull run as well as a FORWARD SPLIT, as there simply won't be enough stock in the float to meet the demand. It'll be another Monster Beverages story IMHO.
Long term, investors will see stronger growth, and sooner than if the company would have continued on for years trading on the OTC by a handful of market makers, some good and some crooked, where the big boys won't go to look for investments. Simple as that. When it's timed and executed wisely, it's a win-win for the company and it's investors.
Failing companies all too often exercise reverse splits to "reset" their stock in an effort to get more shares authorized, so that they can raise more capital for salaries and basic expenses just to keep the lights on and continue to get paid for failing.
This is NOT one of those companies. I don't normally ramble on about other companies on this board, but this is a great time to do it as I have a truly beautiful example of why a RS isn't always a bad thing for long term investors. It's bad for shorts and near term flippers sometimes, if their timing is wrong and they get on the wrong side of the fence.
It's another stock I've been invested in for over a year now. I loaded up at .22 for most of it. Bought some a little higher, but no matter because my average is sweet and it's headed for the moon. The ticker is FUSZD. The stock was just reverse split at a ratio of 1 for 15, and the name has been changed from nFusz to Verb Technologies.
The reverse split was only done to ensure leaving the pirate-riddled OTC behind and uplist to the Nasdaq. Immediately following the split, the stock moved up and has been trading at over twice what it was post split. In other words, NOT sinking back into the sewer like a losing company's stock would do, and the uplist is just days away, where institutional investors will now be able to start buying the stock.
The low float and high demand that's anticipated will surely result in a bull run as well as a FORWARD SPLIT, as there simply won't be enough stock in the float to meet the demand. It'll be another Monster Beverages story IMHO.
Long term, investors will see stronger growth, and sooner than if the company would have continued on for years trading on the OTC by a handful of market makers, some good and some crooked, where the big boys won't go to look for investments. Simple as that. When it's timed and executed wisely, it's a win-win for the company and it's investors.
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