Well I don't live in that universe. In my reality if I have 10,000 shares that I bought at $1 and share price goes to $4 I made $30,000 - 300% return.
If I have 10,000 shares that I bought at $1 and the company does a 10:1 reverse split I now have 1,000 shares worth $10 each. What are the chances that stock will get to $40/share in any reasonable timeframe (2 years say) so that you could get the same 300% return? I highly doubt it.
Stock price almost always drops after the reverse split killing share holders 2 times. The first is after the shares are split then again when the price tanks, and inevitably it almost always does.
There is no reason for this profitable company to reverse split. ZERO reason, they have a great share structure, their price is going up nicely and will continue to shoot up with each quarterly report so long as they continue on the same path.
I guess some people think its a good idea to reverse split...I believe 99.999% of investors would side with me in saying they are terrible, sometimes necessary, but you would never want to be part of it.
glta
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