First Sound Bank (FSWA)

[Lazarus]

I have another penny bank stock that traded as high as .68 - .70 cents over the last 5 years. Then they did a 50/1 reverse split earlier this year and the post split price dropped to around .30 cents. ( a price BELOW its book value). Said bank - UABK - is now trading under book value at ~ $16.50 (pre-split price of .33)

IMO - FSWA will do a reverse split; its just a matter of time. I dont think it will be less than a 50/1... more like 100/1.

These look appealing to penny traders because they're cheap. They bid them up over Book Value and when the split comes they bail. And why not, they did buy it for an investment -- they bought it because it was hyped and thought they could get rich quick. Once they realize it aint gonna happen they head for the exits.