There is always a reason for every action and the people holding shares that have had a reverse split immediately get pissed. Now this is the question you have to mull over: Is it better to have a fraction of the shares I bought or see the company go out of business? If you think its better to go out of business you should sell and minimize your losses. So why reverse split? To get the price up so they can issue more shares and stay in business and continue on their planned path. Its is actually good in theory because it is attempting to bring value to the share holder in their pursuit of increasing revenue.
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