Loving Reverse Cowgirl in the Afternoon...
Huck, these are really excellent questions to ask, especially with GTXO. The answer is, with this stock I don't know. This one has behaved very different from the other two. That's why it has intrigued me.
Maybe I can use SLTD as an example to answer your questions:
-I acquired my shares of SLTD (2013-2014)when they were swinging between $0.04-$0.06. This was happening for a couple of months. Then after some good news about them generating positive revenue and then news of profit, their stock jumped to $0.07-$0.08. Then more news of them acquiring SUNworks and MD Energy shot shares up to $0.17 (Maxed out @$0.30)when they reversed (1:26).
So, if you got in when they split ($0.017) your entry point would have been $0.017 X 26 or $4.42 pps.
But my entry point was $0.045 X 26 or $1.17 pps.
I have never seen this pps with SLTD since the time I acquired the stock.
In short:
Buy in @ a good entry point early then you can't lose on a reverse split.
Buy too late @ reverse price then you lose out on your cushion. (Current PPS of SLTD have already gone
well below the reverse split price of $4.42)
If it does well in the OTC world and goes above $1-2. Then they won't have to worry about doing a reverse split, right? Or is $1 unrealistic with the amount of outstanding shares?
In the OTC world, a reverse split is used to gain more solid reputation and legitimacy. This in turn, will attract more investors thus driving PPS up. A stock on OTC to from $0.01 to $1 would be a very difficult feat without a reverse (not impossible, but very difficult).
This is what intrigues me about this one, very bullish and aggressive on maintaining a relatively low amount of outstanding shares and shares on the float. Even SLTD had 131M more shares from yearly dilution than GTXO by the time they reversed.
What does it mean?
Either they want to scam all of us by running away with approximately $3.8 M (Float X current share price)
OR
They plan to be acquired.
I have yet to own an OTC stock which has been acquired at a high PPS. I have acquired several that have merged and uplisted, but not yet acquired. I truly believe GTXO will be my first.
