XpresSpa Group Inc (XSPA)

[Red Angus]

I personally don’t have a firm opinion re the advantages vs. disadvantages of a reverse stock split. In the past, several stocks that I’ve owned that had r/s worked against the stock price in the long run. I’m also aware, though, of a few companies that had good results with the move.

I happen to agree with those who claim that the shorts will rather quickly knock the price back down after a r/s. With the present low price the shorts are on extremely dangerous grounds if they attack the price and someone comes in with big bucks and kills them. A r/s pushes the door back open for the shorts. A move of a nickel or dime---or much more, on big news---if you’re playing with a really big number of 60-cent shares would hurt a shorter a helluva lot more than the same move for a lesser number of $6 shares.

As we’ve discussed before, VRNG apparently doesn’t have a backer or backers of the stock in the big-hitter class. Further, the company itself, for various reasons, has not, won’t, or can’t defend the pps. Up til now this could be either good or bad for the company and shareholders. (Those of us who own shares in the $3 range have been able to average down with much cheaper shares.)

There are many aspects to the whole question.

I’m sure open to hear more comments by people who are knowledgeable on the issue.