Here some good PR for the doom and gloomers who thing RS is always bad.
XMET has affected a 100 for 1 reverse stock split and changed its name to Houmu Holdings Ltd. There is a common misconception on the bulletin boards that RS means a falling stock price and this is not true at all. Looking back over the past few years many high-profile penny stocks that saw RS actually made significant runs right after the RS. We wrote about some otc that did RS and made big moves directly after the RS a few years ago so its a bit out of date: “CTSO did a 25 for 1 RS the stock opened after the RS at just over $4 a share and quickly ran to over $12 in 3 weeks. SIAF did a 9.9 for 1 RS and the stock opened after the RS at just over $6 a share and was trading over $9 by the next day. Even if we look back farther and take MSLP which did a 850 for 1 RS and opened after the RS at just over $4 and was trading over $12 a share within 6 months. So I reject the general consensus that is going around that RS will result in a dropping PPS; on the contrary RS could be the catalyst that takes this one to the next level.
It is also important to note that new CEO Wei Tian is a season executive who has participated in many successful IPOs. He also participated and issued the Deutsche Bank Subprime Mortgage Bonds Derivatives Plan
The name change to Houmu Holdings Shenzhen Atsumu Wealth Management Co., Ltd., abbreviated as Atsumu Fortune, was established in March 2015 and is headquartered in Jinan Hanyu Jingu, the regional financial center of Shandong Province, with a registered capital of 100 million yuan ($15 million USD) Houmo Holdings is focused on comprehensive asset allocation consulting, investment product screening, Corporate financing services for domestic high-net-worth individuals and institutions, asset management and other diversified financial services.
