Somatic Systems Inc (SMAS)

[rx81]

How does a reverse split vastly benefits shareholders? From experience, the price reverts back to what it was before the split turning shareholders into bagholders. To future shareholders a reverse split is nothing more than admittance of failing company.

The only way to make it work that I can see is if we have a tonne of volume consistently for a few months before the split so people are excited about the company and they can only see a split doing FURTHER good things to the company. We're talking volumes around 400-500 million every day at current price. Having said that, for a pink, it's pretty much impossible for it to do well after a reverse split.