Is reverse split always bad for company? 1 minute ago I know a lot of posters "fear" a reverse split, however, under certain circumstances, they don't necessarily hurt a company. The only time a company is damaged by a reverse split is when they reverse split, THEN issue tons/millions of new shares - this DILUTES the value of the current shareholders. For example, you own 1000 shares valued at $1 a share and a reverse split gives you 10 shares for every 100. In this case each share would be worth $10 and your 100 shares would be worth $1000 (NO DIFFERENCE IN VALUE FROM THE SHARES YOU OWNED PRIOR TO THE REVERSE SPLIT).
On the other hand, if the company AFTER THE REVERSE SPLIT issues millions more shares, THEN AND ONLY THEN DO YOUR SHARES GET DILUTED!!!!!
That's what the scam artists in the subpennies do all the time, reverse split then issue billion more shares that cause dilution.
Can anyone with some "knowledge" make some commentary as to the pros and cons of reverse splitting ABTG. PLEASE, WE NEED SOME ANALYSIS AND CIVIL DISCUSSION SO WE CAN DETREMINE OUR "SELL" STRATEGY.
I really wish Cubeman/Polka or anyone w/some analytical skills would have some input. But....anyone else that understands the mechanics of r/s....PLEASE COMMENT. GR