Ascent Solar Technologies Inc (ASTI)

[STL Stock]

It would not be bad in the case of ASTI as it would accompany an up list. Let's say you own 100,000 shares at 0.70 making your lot worth $70,000.00 pre-split. 100,000 × 0.70 = $70,000.00. ASTI does a 1:10 RS at 0.70. So 100,000 ÷ 10 = 10,000 shares and ASTI up-list to $7 pps post split. You have fewer shares but each share is worth more. Your overall investment value has not changed. 10,000 × $7.00 = $70,000.00. It's an accounting trick and is like trading in twenty single dollar bills for one twenty dollar bill.

The up side being now you are on the big board with good chances of attracting more sophisticated investors that won't even look at penny stocks. Thus pushing the pps up. It could go from $7 pps to $10 pps or higher. Likewise it can dip lower. All depends on how investors and shareholders behave post split which noone can predict. Good news and revenues should accompany an up list in order to justify the up list. I would imagine ASTI will do this before they go that route.

The takeaway though is during a RS your original shares are reduced for new shares that are worth more but equal to your original investment. Losing money or making money post-split depends on investors and the market. Just divide the number of your shares by the split number(whatever that will be) and you will have your new share count. Forward splits work the opposite. You would multiply your share count by the split number however the pps does not change just the share count. Hope that helps.