Valentine Beauty Inc. (VLBI)

[The Virtual Cat]

A reverse split isn't based on a price, it's based on the number of shares. So on the day the split takes effect you'll have 1 share for every 300 shares you had the day before---but that 1 share will be worth 300 times what 1 share was worth the day before. The size of the pie doesn't change, just into how many slices it's cut. Think of it as exchanging ten $1 bills for one $10 bill.

That's in theory.

In practice, the fact that a company has decided to reverse split its stock usually indicates they're planning to issue tons of new shares and dilute the stock. Well, at least 99 times out of 100 it does. And so the share price drops as people panic and sell.

But I'm hoping this is the 1 out of 100. No risk, no reward. Keeping fingers crossed....

=^..^=