InvestorsHub Logo
Followers 34
Posts 4651
Boards Moderated 0
Alias Born 03/18/2013

Re: early_retirement2 post# 59933

Wednesday, 10/23/2013 2:25:49 PM

Wednesday, October 23, 2013 2:25:49 PM

Post# of 183607
Nothing wrong with a Reverse Split

Why are people constantly bringing up RS as some kind of terrible thing to be avoided at all cost.

It is no different than taking 10 one dollar bills out of your wallet or purse and handing them to someone for a 10 bill, no different at all.

What people should be concerned about is the REASON for the RS and typically it is done by companies that are about to be delisted from a major exchange because the price has fallen below $1, in those cases it is the BUSINESS that has collapsed and that is why the RS done for this reason seldom works and the new higher share price just continues to go down because there has been no change in the companies fundamentals.

If PVSP becomes cash flow positive and begins to grow revenue and profits, then a RS would be nothing to fear and if it was done to allow the company to regain listing on the Nasdaq or Nyse then it would be a super positive.