RS May be good in this case. Observations.
Possible reasons to RS:
1. Less shares available to borrow, and price gaps between bid/ask will be wider which may deter short sellers.
2. Prime the company to trade in a new [more exposed] index. e.g. NYSE/NASDAQ.
Nothing changes with the market capitalization.
Say you have 20M shares now @ .0002.
Well, before all this, you were headed to .0005.
Now reverse split 1-2000.
You now have 10,000 shares @ .40 heading to $1.
"In the vast majority of cases, a reverse split is undertaken to fulfill exchange listing requirements" - Investopedia
They're thinking big, so, maybe they're priming to move to another index?
Maybe NYSE or NASDAQ? This case would be normal.
Longs have some hope if you believe the news and hype.
Shorts will have to find another stock to troll.
But do your DD and comb that April 7th report. Read between the lines.
If you're a long, good luck. (Probably won't need it though)
If you're short, see you elsewhere.
My opinion from checking other telecoms is that panic may be pre-mature. This is a multi-billion dollar industry with lots of room for revenue growth. Check their acquisitions and their customer base. This data will say a lot about their survivability in the eco-system at large.
I'm just observing. So, please tear holes in this logic.
Bashers are gonna bash, pumpers are gonna pump.
Make up your own mind and make your fortune.
Good luck to all.
