Absolutely. Investor confidence will be a huge deciding factor in how the price moves after the R/S, just slightly less important than seeing massive dilution.
I mean you don't need to look any further than 1929 and the Great Depression to see what fear and lack of confidence can do. But if they don't dilute and can produce money by other means to continue expanding the company, that even after a plunge the stock can build back up.
All said, I have a strong feeling that the prices will indeed drop for a while after the R/S regardless of dilution. People will be scared.
I'll definitely have some money ready to pick up extra cheap shares if I feel confident in the company's ability to recover after it! Add to my current stock pile.
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