Not a veteran trader but I can say the typical reason in the otc to reverse split is the ability to increase the A/S again. Or atleast that is the stigma. Hard to find one that r/s's and then goes up afterwards. If he brings it back to .o4 cents or so and they are doing awesome financially and he wants to r/s to get listed on the nasdaq. Then that is completely different. Don't think that is what everyone is concerned about.
Yes you are correct. However, the company usually starts diluting after the reverse. So you end with a smaller piece of the pie as well as with the offsetting of supply and demand through dilution comes a lower price. I have never saw a reverse split that worked out for investors that held through one. I'm wondering in manu's case if his twitter posts were protected by the safe harbor disclaimer?
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