Reverse Split
As a standing rule, when a company announces a reverse split, if I am a shareholder, I sell immediately. Without exception. It will save you a great deal of money if you do that. If you followed reverse splits, 19 out of 20 or worse drop significantly in value after the split and you lose. Like someone posted here, 30% or 50% drop easy. I've made the same observation.
Case in point, a smaller environmental company called Texcom, symbol TEXC.
25 July - BOD meeting where shareholders approve 1:10 reverse split. Stock trading at $0.25/share
15 Aug. - Split becomes effective with new stock symbol for 20 days. Stock trading at $2.50/share
Mid September - Stock trading at $1.60/share
16 Oct. - Stock trading at $1.15 bid / $1.30 ask
That is a perfect example of a typical reverse split both in time line and in loss in stock price. I hope that helps.
I do continue to follow the stock after the split though,because after that stock drops for a while, and IF mgmt makes the right moves, it can take off again, giving you a discounted and safer entry.
While with BLTA, mgmt is saying they won't do a reverse split, my take on this from experience is that they probably won't do one any time soon. And if they do, it will be known to you as a shareholder. They are a listed company and it's a material event. So it must be disclosed. Giving you the time you need to sell.
With the billions of shares outstanding they will have by the time they launch and want to expand the airline and need access to significant larger $s, the players they then deal with may very well require a reverse split to slim down the company for Baltia to get access to that money. Why? Because any larger investor will assume a reverse split will have to take place and they will want it done BEFORE they receive their stock. Also, it makes the company more attractive to larger investors. Some won't even take a position in a small company which such a stock dilution.
So I wouldn't worry, it's not an issue for current investors for now.
On a separate note, I notice some posters disappointed that the stock hasn't run up as a result of the Phase 3 announcement. There has been so much stock issued and is hanging over this price at various levels, that each time the stock moves up, it will hit levels of large chunks of stock that it has to chew through to move on. Some of these big PP investors will sell off chunks of stock at lower levels to get their principal back, and hold the rest of their shares at no risk. The smaller investors are holding all their shares for the big bang and 10x, so you may assume everyone else has the same strategy. I'm sure that's not the case.
I'd say just let it gyrate around, if and when they fly, which should be soon by all accounts, you'll get your bang for your buck. Just requires patience and a few month (hopefully not more) viewpoint rather than day by day.
