R/S are only sometimes Good for LARGE investors
Reverse Stock split shenanigans are only sometimes good for very large investors who can 'weather' the attack on their large investments -- and even they can be caught off guard. I have been caught in a 3000:1 reverse stock split - that effectively made my entire investment worthless. As many as 75% of all stocks wind up trading lower after a reverse split.
These are among the reasons to NEVER place a very large bet on any penny stock.
So, so many times after a penny stock does a the reverse split which wipes out SMALL investors' entire investments, even the very LARGE LONG investors get hurt. The stock may open a little higher after the R/S, but typically it plunders back down - and now the small investors are so ticked off at that stock because their entire investment was basically 'stolen' that they will never ever go near it again. Not only that they will begin posting bad things about that company because of what they rightfully perceive as a 'rip off' that was handed them.
Stock splits are nothing more than smoke and mirrors. They don’t create any real value. If you own a stock and it does a stock split or reverse stock split, it might be time to look for a different investment.
Like I said previously, I am waiting for MyDx to decide what they are going to do about this reverse stock split (R/S) shenanigans before getting back into it. I never bet more than $300-$400 on any penny stock. So as a small investor who would be wiped out completely by a MyDx R/S I am patiently sitting on the sidelines waiting for MyDx to take their awful long time to announce what and when or not. In the meantime, I still think it is ONLY this unknown that is driving MYDX down further and further.
