Charlestowne Premium Beverages Inc. (FPWM)

[Million shares]

I'm very familiar with how reverse splits work, both in theory and in reality. I've also held through many of them since the theory is good. The reality is that holding lost me money in the majority of them.

There are a tremendous number of shorters flocking to stocks after a R/S. That is part of why so many drop after the split.

Then there is the issue of your trading platform. The majority of brokers don't allow you to sell your shares during the first three days after a split. Sometimes weeks after you still can't sell!

Sometimes, the price stays up and keeps going, but, that isn't as common as the drop in price. So, as a rule, I'll get more of a stock I want after the initial drop after the third or fourth day. Even if I'm wrong on a particular stock I'm ok with the decision to wait since the risk is just too great for me to enter with any size pre split.