Replies to post #63643 on NaturalShrimp Inc (SHMP)

[BaGr]

It depends. The last two rs I played made money. First one went from post split ,20 to ,80 and the last one went from around 7.50 to around 19.00.

[AISI304]

I think you pretty much summed-up our thoughts!!!

SHMP is pumped, diluted, and now maybe a R/S?

And yet, no revs, just debt and liabilities in its fins!

All SHMP does is roll downhill! Roll, SHMP, down!

Matt1963 Monday, 07/15/19 05:42:02 AM
Re: MLR_Lite post# 63624
Post # 63643 of 63656

"I also talked to Gerald about the possibility of reverse splits in the stocks. He said that they have financial advisers that they discuss things like that with but it has not been discussed. He said that if it happened in the future that the value of our shares would not change just the number would decrease and the value per share would increase."

On the day of the RS yes. So for example if the RS was 100:1 and the pps 10 cents before the RS, if you held 10,000 shares with a value of $1,000, after the RS you will have 100 shares at $10 per share, i.e. still $1,000 position size (just an example). But the instant it starts trading, it will get shorted to hell and the drop in value is exacerbated exponentially. So whilst the above statement is again, technically correct, the implications of a RS are stark and pretty devastating for current SH's. Take a look at HMNY as an example of a company who have pulled this trick multiple times to stay alive!!!

If anyone here can tell me one single instance when an OTC stock performed a Reverse Split and this actually saw the pps go up and subsequently benefit the pitiful stuckholders, kindly do.

However, from what I have observed, seen and been stuck in personally, a RS is very bad for the pps in the short to medium term almost 100% of the time.

The fact that a RS has not been completely ruled out then is very telling and indeed, all the more reason to remain sidelined at least for the short term.

[JoshTaeger]

Agreed. A SHMP R/S would be bad news for shareholders. There's no fundamental support for the current pps, so the pps after an R/S will just drift downward.