GXXM MERGER PENDING or not has several components.
1) The structure of any merger with a second entity and whether to reverse split or not depends entirely upon the current financial needs of both entities, which public filings do not show, if you have a good accountant. If there's no big gain, there's no merge.
2) The shared goal of the entities could be either to strengthen the financial balance sheet of either or both if they are seeking capital at the time of the merger, or to weaken the surface financial appearance (including stock price up or down) for internal financial reasons. It's why GE pays very little in taxes.
3) Strengthening financial appearance is used to improve capital when an actual tangible uptick is projected in revenues, not pie in the sky, like "forward looking statements," which give a stock a boost for a bit as "news," but PR's don't fool lending institutions. Their lobbies aren't marble because they're stupid.
4) Weakening financials is how a company spreads expenses and defers taxes across the desired fiscal year(s).
5) Unless you're an insider, you cannot know GEX's intentions. All their data and filings can be used for either goal. That's on purpose, to keep their plans under wraps. It's all about the voting members pockets, not the traders.
6) Merges are rare. If one is pending, GEX Mgmt will keep it completely a secret until it happens. No exception, because like an IPO, that's how merging companies get the biggest bang, raise the most $$, for the merge.
7) GEX already knows everything you can possibly see in their filings, so filings are drafted in a way to only show the public GEX's options, without having to disclose their intentions.
8) Trust your gut, if it feels right, stay. If not, go. At least GEX Mgmt has done the courtesy of stating that a RS is possible.
We can swap one-liners, but there's no actual news until there's actual news.
