Reverse splits used to be very common in OTC and most tickers in the low trips got there that way after their pps being much higher before the r/s/. That is why one cannot just look at the historical chart and say that these used to be trading over a dollar or ten dollars or hundreds of dollars. Check the box that says 'show events / splits' when viewing historical charts.
EWKS Feb 5, 2009 reverse split: Pps before trickled down with dilution from about $6 in 2003 / 2004 to about .0015 just before the split then it went to 0001's and stayed there for 10 years including months at ZERO or .000001 until the end of 2020. Volume over those 10 years was sporadic and light except one trade on 4/1/14 of 1.68 Billion shares. The volume picked up in Dec 2020 and here we are today, no news just mystery volume totaling about 2 Billion shares traded from mid December through today.
Many custodianships are happening lately and most of the tickers involved have had some sort of uptick in volume in the months before the custodianship was filed so this has that potential. Once custodianship has been granted a new company comes in on a clean slate much cheaper than it would be by starting up on it's own with an IPO. Ssm Monopoly and Synergy have current tickers in the works that have seen hundreds to thousands % recent gains in pps. These ticker's pps are going from trips high doubles to low pennies, some have gone to dollar land then next stop will be NASDAQ.
Also could be a group or individual buying up the float but that would normally come with a pump and we haven't seen that yet.
The bigger thing I have noticed is that There is a massive influx of buyers in the OTC from Robinhood and Reddit. Just go there and enter $EWKS, nothing was there before and now have many very active discussions. These people are buying up all the low trips in hopes of catching a ticker that goes to pennies. There is now more holding and less flipping also and I think that trend will continue with OTC stocks as more stimulus checks come in and popularity continues to increase.
For these reasons I think most of the OTC charts are 'broken' due to this paradigm shift in trading habits.
Anyone's guess at this point what is going on here.
My opinions and comments are just that. They are not a recommendation to either buy or sell any security.
