A R/S allows the shareholder to maintain the same value, and allows EPS profits to attain real numbers of value quicker if the O/S is reduced in this case by 5 - 10 times, and the company has a clear path to profitability.
Only traders/flippers really care about the R/S. They lose their leverage.
True longs will value less volatility.
The only thing the R/S indicates is an organizational failure that required so many shares to be issued in order to fund operations, and to continue to exist.
The fear shareholders might reasonably have is once the company put them in a position to require the R/S, will the company issue so many shares again for the same reasons, and then do it again.
Any long who invested when the O/S was let's say, 200M already saw their value decrease 6x's.
Facts rule.
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