GEMXX Corp (GEMZ)

[GiveBackGamer]

People saying you lose money on a R/S are fear-mongering... your market value does not change. Your share count reduces and flippers get screwed because now a 1 cent increase doesn’t give you as much of a gain, but your market value doesn’t change.

For example - if you had 1,000,000 shares in the past, 1 penny up would give you an unrealized gain of $10,000

With new structure (1,000,000/5,000) that person will have 200 shares... so one penny would only give them an unrealized gain of $200
You don’t make as much money or lose as much money with a penny change in the new share structure.

Pros: lower float, higher PPS may get more eyes of investors who don’t like penny stocks,

Cons: much fewer shares so PPS movement doesn’t change your unrealized gain as much, reorganization fee may be charged to your account on Etrade/TD (usually ~$20 no matter how many shares you have), huge sell offs may occur some people looking to get quick/huge gains as they only have a few shares now

All my opinion... good luck to everyone. Personally I don’t like R/S