So with 1mm shares at .25 a shareholder has a value of $250K. Then your theory reduces that shareholder's shares 1/10 to 100k shares at $1.00/share or $100K and the PPS needs to get to $2.50 to break even before the split. An R/S is the worst strategy Treaty could do for shareholders. Micro-cap companies that R/S don't have revenue and that is probably where your experience comes from. Companies with revenue announce Buybacks or merge and handle the share structure that way.
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