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Re: abbyroad post# 15843

Thursday, 08/22/2013 6:27:54 PM

Thursday, August 22, 2013 6:27:54 PM

Post# of 44087
Tell that to the person who only had $1,000 to spend. That person bought a .05, before the split. They dont have money to avg down. At .05, they bought 20,000 shares. After the reverse split, they have 571 shares. Now instead of making money when the pps moves past .05, now they have to hope the pps moves past $1.75, to just break even.

If you have continuous funds to buy lower and lower, then dilution may not hurt as bad, because most stocks will bounce in time. However, when you cant avg down, then dilution kills any hope of making money. Dilution is killer. Part of the reason for the lack of interest is that many know the diluters are controlling the price.
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