CEA Industries Inc. (CEAD)

[Plan9FromOuterSpace]

JMTco, you are correct in a pure mathematical sense

Your example of a reverse split, where number of shares decrease, the price increases to a new artificial level and market cap remains the same.... is of course exactly right.

I am referring to the risk of a reverse split in two ways:

1) Investor sentiment - reverse splits have a long history of not working, almost always resulting in a temporarily inflated stock price, and then destruction of value over time. We know that this is because, MOST companies that even consider the idea have a declining business, with no real plans, and are in peril to get de-listed from an exchange.

SRNA would be perceived as guilty by association, and cannot get de-listed from the OTC exchange, so why do it?

2) An inflated price, on a major exchange makes a stock more vulnerable to institutional shorting. We have all seen viable companies attacked by shorting until a stock is driven down to ridiculous levels. You think some new ticker on Nasdaq like SRNA will be safe from this? Probably not, there is alot of money to be made shorting a $5 stock back down to $.07.

Now, all of this is irrelevant, if SRNA focuses on one thing: Start selling more of your products, and leave the stock alone.