sublime740 is correct. Historical analysis has confirmed that a forward split typically means the stock traders higher afterwards.
On the contrary, a reverse split is typically performed by companies who are facing delisting, and as such must effect a reverse split in order to stay listed on the larger exchanges. The very reason why the stock is in this predicament in the first place is usually due to some reason. Most likely the reason is massive dilution, or a failed product, or diminishing sales.
As sublime740 points out, the reason is critical. In some cases, after a reverse split, the stock may tank some more. However, if an FDA approval comes along, or they happen to launch a really good product (HEAR is a stock I followed that did that), then the stock price goes up.
However, the majority of stocks needing to do a reverse split do not have anything magical to pull out of their hats, and typically after a reverse split, the stock sells off again, until they either delist or continue raping shareholders like DRYS and the other Greek shipping stocks. The reason the Greek shipping stocks can do it is because they are incorporated in the Marshall Islands, which has limited laws to protect shareholders. DCTH is an example where shareholders voted NO to a reverse split, which it then delisted (intentionally before the actual delist date as an "in your face" to the shareholders from management). It has since effected two punishing reverse splits of 1 for 350 and 1 for 500, which resulted in $100K at 500K shares to turn into a few dollars at only 3 shares. Some people ended up with ZERO shares.
Think about that for a moment. 500K shares, wake up after 2 reverse splits and you have 3 shares. Someone who started with less shares, say 75K, wakes up after two punishing reverse splits to find ZERO shares left. At a fraction of .4285, that usually gets rounded down to ZERO.
This is why a reverse split is not usually a good, especially multiple reverse splits.
So the reason matters. The reason HMNY is in this boat is because of massive losses, more and more each month. After a reverse split, this will only get worse. This is why they increased authorized shares from initially 100 million to 500 million to an expected 2 billion and then silently put in an amended to do 5 billion shares. That's massive shareholder raping.
So, for HMNY, it's not a good thing. But if you vote no, you're screwed either way. There is no reason to buy HMNY right now. There is no rush.
What did you get from this? There is no rush to buy HMNY right now. Wait for this mess to settle and wait until they are profitable.
I have already proven mathematically that their 51% acquisition of Emmett/Oasis films is a money-losing business model. Do you look at your bank statement and disagree with the math and sue your bank? Do you look at an equation that says 1 + 1 = 2 and you disagree with it? You wouldn't. So why would you disagree with my proven math abilities, which has resulted in spot on, dead accurate estimates of MoviePass subs (not once, but twice in October and in May) and dead accurate estimates of HMNY outstanding shares in the middle of June?
