Bebida Beverage Company (BBDA)

[Jamesmobile]

A R/S is definitely not always a bad thing. If BBDA performs say a R/S of 1 for 10 shares, and reported $0.01 per share in earnings, the adjusted EPS would then be $0.10. This is similar to the market cap. If investor valuation accounts for the market cap and a reverse split occurs, the market cap should remain the same and hold steady. As you said, initially the share price could drop but should recover based on a solid company.

Later on down the road the company might reach a point where a normal split needs to happen to bring the share price to a lower level for investors.

I honestly do not think that a R/S is going to happen with BBDA based on the intentions to buy back some of the shares. I could be wrong but either way I don't worry about the outcome unless I have something to worry about. Everything I have seen is positive for BBDA.