Greenshift Corporation (GERS)

[Oz the OK]

It depends on the situation.

Some companies are true turn-around candidates. They have an actual revenue model and have positive income. They may reverse split the stock merely to get the share price up higher; maybe to meet the minimum price requirements for a NASDAQ listing, or get the price above $5 so mutual funds can buy the stock.


Usually for Penny Stocks, it's not good, as it allows for further dilution and price depreciation. Right now, Greenshift has been stuck trading between .0002 and .0003 for a few months. If they reverse split it, the new share price will be higher, with a lot of room to come right back down to the range it's in today, easily hammering your equity.