Honestly...NO.
A reverse split is completely irrelevant to the company's valuation. 1X sales is 1X sales regardless. The last company I was invested in that did a RS for the same reason this company is, has seen its shares more than triple since. That company is Marathon Patent Group "MARA".
The perception of RS's being negative is because 9 out 10 times, a company does them out of necessity and to enable a company to raise more money. To the contrary in the case of SilverSun, it's being done out strength and opportunity in an effort to unlock shareholder value.
SilverSun is already profitable and has cash on its balance sheet. The sole reason for a potential RS is to try and list on the Nasdaq. If successful, the end completely justifies the means. A listing for this company could instantly unlock considerable shareholder value in my opinion and the lower share count would create better earnings leverage.
Frankly, I think the disparity in pricing of this company, compared to others in the space is only because they are on the OTCBB to begin with.
I believe that if this company were listed already, it would likely already be trading at 2X-3X sales, or 50-60 cents as we speak. Ironically, many of the others in the space trading at higher price to sales ratios aren't even profitable like SilverSun.
This company's results speak for themselves as does management's desire to enhance the company's listing status. When you consider that insiders and management own the majority of the shares, one can only logically surmise that they are doing this to create value for both themselves, and the rest of us.
Stock traded at a new 52 week high today and it's obvious there isn't a lot of stock for sale at current levels. I look for the stock to trade higher, no different than what I've suggested since my first post here. Only thing that has changed is my conviction due to the last couple of exceedingly strong financial reports, most especially last quarters.
