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Re: RealinvestDD post# 17975

Wednesday, 05/22/2019 8:34:56 AM

Wednesday, May 22, 2019 8:34:56 AM

Post# of 23995
a reverse isn't always a negative.

when it's for the purpose of a company issuing new shares to themselves so that they can just unload them on the market, but beginning at a higher price. It's obviously not good.

Depending on where the reverse takes place (price) we'll likely be in a much different market than the .00xx one.

If it is for the purpose of funding for company expansion and growth it can help the stock in a couple of ways. First you lose the volatility of an OTC stock with 1bn outstanding and without the volatility usually, the day traders look somewhere else. Second, if news accompanies the reverse, especially that of revenues and mergers then it can keep the share price from retracing to previous levels and new shares issued under a Reg A will be restricted so you don't have them coming into the market right away.

I am guessing there will be more surprises but yesterday was a relief!

Congrats to those who hung in there these past 3 weeks!!