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Saturday, January 16, 2016 3:29:36 PM
It takes a Long Term holders stock of say 300,000 shares at .50 --> reverse split 10 to 1 ratio -->
New stock price at $5 a share 30,000 shares. Now usually with most RS the stock spikes a bit and then gradually comes down during the first week, a lot of times below the $5 mark.
So just speaking from a Long term investor point of view:
We all stood with and promoted the company expecting to sell at a decent pre Reverse Split rate.
People can still make money, but they stole the dream and golden ticket of getting in early.
So if you get caught in the Reverse Split its a big difference in profit.
300,000 shares at say $1.75 compared to a RS at .50 and 30,000 at $5 ( if ur lucky)
So yes you do not lose money, but the dream is dead.
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