Oh yes, HMNY. I traded that many times last year

Oh yes, HMNY. I traded that many times last year. Buy at 3:59pm when the conversion algorithms selling all day long turn off, sell at 4:10pm for a 10% gain. Many reverse splits are so the company can continue selling more shares, like HMNY's case. A reverse split to dilute more shares is very likely going to be a disaster. Citibank I believe did a reverse split because their share price dropped below $5 (the threshold for some institutions to hold shares) . So I don't believe it was done to dilute. There are many example of RS succeeding with big board stock, but most fall into a similar category. In otc land, almost all reverse splits are due to maxed out authorized shares, where there is more selling coming after the split. Those are always disastrous.