LIBE REVERSE SPLIT - makes sense
If LIBE wants the stock up, a RS adds value for the Company, by washing out 000 traders and replacing them by attracting a new base of people who view the stock as of a higher tier. It removes"the 000 stigma" from their image. Whatever the motive, since triple 000 traders won't stick around, the company image gets a fresh coat of paint. Rather than try to divine anything, cash out or ride it, but do your job, work the next trade.
At 1/2000, it's .50 cents for each point (starting at 0001), at the close, which looks like this.
RS close - - - - - Resulting New Open
.0001 - - - - - - - - - - .50 cents
.0002 - - - - - - - - - - $1.00
.0003 - - - - - - - - - - $1.50
.0004 - - - - - - - - - - $2.00
Investors
If you're in it long, it's your stated belief by doing so that you believe it's a good, safe company, an investment, not a trade, that will go up. Be honest with yourself. If that's what you believe, a RS should be good news, as it may help LIBE secure new financing or business endeavors.
Traders
If you owned it at 0001 or low and sold, you won. If you bought high because you didn't play it as a 0001 pump, DD was lacking. Study your buys, find the next one, execute better. There are several good 0001 flips out there to work you account up with.
Reverse Split
Fretting about 000 reverse splits is useless, especially when you have advance warning. Filings don't matter in 000 stocks, the companies got there for a reason. If a RS helps them turn it around, more power to them. It's just business.
If you sell fast at the open, you'll get out with 90% or more of what your shares were worth at the split. If you bought at 0001 and it splits at 0002, you'll make money on the split. If you bought at 0002 and it splits at 0001, you'll lose. If it's a losing trade, it's always the Buy, not the Sell.
Happy trading to all!
