Bebida Beverage Company (BBDA)

[Jamesmobile]

If executed properly, a reverse split will still maintain the overall value. In some cases, a reverse split results in a drop in value after the split but typically recovers shortly after. A higher share price after the split could attract more investors and institutions.

In my evaluation of a company I look at the market cap (Share price times outstanding shares) to determine if the assets plus earnings and other characteristics justify the value. Given BBDA's recent distributions and growing customer base, I expect the next financials to be a share price determination point. If a reverse split is executed in relation to the release of financials, it could alleviate any sudden drop and could spike up considerably to a correct market cap valuation.

Either way, I believe that a R/S or buyback will both have benefits to the stock and investors with BBDA.