iBrands Corp. (IBRC)

[invest007]

Not always the case.
Check out the info under the Reactions heading here:

http://finance.zacks.com/reverse-stock-split-good-bad-2298.html

"But how the market reacts often depends on what else the company is doing to reverse its fortunes. If it simply declares the reverse split and goes on with business as usual, investors may see the split as nothing more than a smoke screen, and the price may go right back to falling as they sell their shares. But if the split is accompanied by serious changes in management, structure or strategy, investors may give the company more time to right the ship"