Netcapital Inc (NCPL)

[GreedyAgorist]

Reverses confuse brokers, but no need to panic. You will eventually see the new ticker and the new share count (a 2000/th of what you had before), and the new price with a $6 handle. E*Trade will catch up. What is annoying, of course, is that they will likely no longer tell you your cost basis. It is embarrassing, really. I mean, if I were one of the top four brokerages in the world who handle billions a day and I could not remember what your cost basis was from one day to the next, I would be embarrassed.

This is why you should always write down your cost when you buy, especially for a taxable account. What a pain it will be in April when your broker’s 1099 says, “sorry, we don’t know what your gain or loss is on that one.” But what do you expect? After all, it is only 2020; maybe in ten more years they will have the technology figured out.

As for reverse splits always being bad news, I must say I have seen a few in the past year. And while they tend to be bearish in the short term, a number of them have ended up in the black (if only briefly), and overall have been no worse on average than any other penny plays I have held long... too long, usually.