Todos Med Ltd (TOMDF)

[Randylus]

Concluding that a reverse stock split guarantees investors (shareholders) will ultimately lose the value of their investment isn’t correct. It’s true that many reverse stock splits are declared by companies whose share price has declined significantly due to bad news, failing financials, or bleak prospects for the company’s future success.

Reverse stock splits may be proposed and make sense when offering a stock tender during an acquisition of another firm.

The key is to do your homework. Reverse splits have a fairly negative reputation, but if the underlying company is fundamentally healthy, it may present an opportunity if other investors are getting out and driving the price down.

Know what you own!