After the R/S occurs, the share price will be $1.00/share, but there will be very few shares in the o/s-the stock won't trade except for a few measly trades here & there. The company will issue shares, then once those shares start trading, they will enter the market, driving the share price down again. So let's say you have 1m shares @ .0001 before the R/S, you will have 10k after. I-hubbers don't buy 1.00/share stocks, they trade pennies. Once this thing drops below 1.00, your $100 turns into $40, or $20, or even lower-see IRCE as a recent example-they did a 1/5000 R/S recently.
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