Red Cat Holdings Inc (RCAT)

[investor2004]

Forward splits are usually always a good thing. If a stock gets super high and is hot typically a company will consider forward spliting to make their shares more "affordable" They also owe the people who sat here for years some shares back considering they reverse split them 1200 to 1 IMHO in this case!

Anyway, say for instance with a 3m float this thing flew to $100 a share. RCAT then decided that was to much for the space and decided they wanted to bring it down to maybe $20 dollars a share. So, they would do a 5 to 1 forward split that would increase our shares 5x thus you would have almost 100k shares now at $20 a share instead of 20k at $100 a share. The idea then would be that investors would then be more apt to buy a $20 share(which is often true) then a $100 share and would push the share higher from the $20 as more people came in at that level. Of course this increases the market cap as well as increasing the major stockholders wealth. This has been done on many larger stocks over the years and almost always works out very well for all invested when it happens just as much as Reverse Splits usually do not work out well(since the company has different reasons for doing them IE reverse split is usually because stock is tanking forward split is usually because the stock is very hot and has a huge price and is doing very well!) JMHO but hopefully that makes sense Sam!