After the split you will have half as many shares...you will have lost half of the money you bought the shares with IN AFFECT when the pps settles. The pps will spike a little, and come back down. You can't sell them for 15 days, while u sit and watch very helplessly. It's a frustrating situation.
Hypothetically, if u own 100 shares at .001, you will soon own 50 at .001 when it settles. These companies will continue to reverse split the stock more than once too...untill eventually people quit buying into it.Then the CEO changes the name and ticker symbol, while calling it a "merger" or "acquisition" to stimulate and excite the base, keep the loyal ones reinvesting.
Look, it's cruel...fraudulent. You don't deserve to have your hooes and dreams shattered, and neither do I. What I do is "make the play" as a "pump n dump" should be played. I'm NOT SAYING THIS IS A PUMP N DUMP, just to play it that way so we don't get burned. The question is how?
Well, one way is DON'T go long by leveraging down your ALL of your profits and increasing your share counts, over and over, to the extent you have a billion shares that u eventually lose in a RS. Take profits everytime you "cash out" on a play and immediately put them into a different stock, and only roll your original FAIRLY SMALL amount back into it. If a RS occurs, who cares? You will have a few hundred dollars in it right???? Most importantly, DONT roll your weekly pay check from your day job into the stock constantly...thats just plain foolish. Do that with a stable stock in the low penny range with good financials.
If at anytime, PMBS prevails and proves legit, you will know and can do some long term investments. I'm not trying to "dog you out" or argue with you, seriously. I don't want anyone to have to go thru a split...nobody will complete a sell-order beforet then. GLTY :)
