Carol mention 10 to 1 in the example, but wouldn't it need to be much higher, say 500 or 1000 to 1, to get any significant value change. If we are at "no bid" does that even change the value at all.
The amount of the reverse split would depend on the price of the shares just prior to the split.
Although the price as of now is .0001 and say 15 billion shares O/S or authorized lets see:
1 for 100 = 150 million .0001 = $.01
1 for 1000 = 15 million .0001 = $.10
1 for 10000 = 1.5 million .0001 = $1
So logic says that they have to have some significant announcements to move the current price up from .0001 before considering a RS.
Announcements such as Increasing closing of deals, earnings, paying a dividend, up list, merger, etc, any or a mix of the above.
Besides looking for the price of the share also look for a comfortable qty of shares to maintain liquidity. Both are important. I would say somewhere between 15 to 150 million shares are workable and ideal. Based on that the price of the stock prior to the split would have to rise accordingly.
This is only my opinion. You should research before you invest to limit your risk. When you invest in pinks its all risk and most fail, Never risk more the 10% of your holdings in pink sheet stocks!
Howard Haftel
