This is ADHCs 'business plan':
They start a fake company and get a stock symbol to go along with it. They will pick a product or a line of work that is currently popular with the public - solar panels, telecom, pharmaceuticals, renewable energy, etc. - w/e gets you people excited the most. They print a billion shares. They try to sell as many of those shares to the public in order to 'raise money' for their 'operations'. In order to aid with this, they will come up with very persuasive (not to intelligent folk) press releases about how they are going to merge with some up and coming Chinese company and how they are on the brink of signing a 5 million dollar contract with the government/some successful business/some huge investor. They are bullsh*tting you, but what they are doing is not necessarily illegal because they use the right wording. They say things like 'we plan to..'. You cannot prove in a court of law what they actually planned to do with the money. They can justify giving the money to themselves as a salary because they are the CEOs.
They really take your money and buy themselves million dollar houses, cars, and live the life. Once they've sold off all of their shares to the public, they use the voting power of the restricted/preferred shares that you and other investors failed to read about to execute a 1:1000 R/S. The billion shares becomes a million, however, they immediately will issue new shares to bring the number back up to a billion - They are not doing this via a 1:1000 Forward split, they are really just printing off completely new shares. Again, this is something they can do because of the voting power of the preferred/restricted shares. Then the cycle starts all over again. They are scam artists and this is their scam. So to answer your question - no, just because there was a R/S does not mean the pps will be at $0.3 or whatever. Eventually, they will sell their shares in full force while releasing news of their 'ongoing developments' Withing a year or two or three, the pps will be back down to 0.0001 and they will execute another reverse split. Rinse and Repeat.
There is no way anyone is going to make money by holding their current position. You want to try to buy in when the price is really low, the company still holds on to a lot of shares, and you feel they are about to start a pump and dump campaign. Then you sell it on the way up. That is the only way to make money with these scams and believe me it is very hard to come out on top. I've been working out the fine details for years.
Everyone who's been around long enough is very familiar with what I'm speaking of.
