Sunshine Biopharma Inc (SBFM)

[Glopez]

A reverse split analogy:

lets say I gave you a pizza without cutting it into slices. Then I gave you a pizza that was cut into 200 slices. Look at both pizzas and tell me which one will make you more full.

The above pizza analogy would be true if stocks were pizza & we were talking about biochemistry, but the two are so far removed from each other that the analogy flatly fails.

A reverse split reduces earning potential. Think of a company with 200 workers, call it company ABC, each worker at ABC has an output that results in 1 dollar per day of profits. Now, suppose that you reduce the number of workers at ABC to 1. Obviously, the company earning potential has been reduced by a factor of 200. Very substantial. Each security (stock) that you own represents your earning potential (the workers)…or loss potential in the case of $SBFM. A reverse split is like a pay cut, it reduces your wages or earning potential.

You can actually build a mathematical model to represent the effects of a reverse split on an investment. F(x)=Ax, where A is the number of shares owned & x is the price of each share. If you divide both sides by 200, then any increase in F(x) is reduced by a factor of 200, so you have (A/200)x=F(x)/200. Alternatively, any increase in x is reduced by A/200.

There are other very serious problems with reverse splits, but I just wanted to give a basic analogy. In the case of $SBFM, there are a lot of negatives to consider, but that will become evident as the price per share plummets….