Replies to post #4790 on Innovative Payment Solutions Inc (IPSI)

[Diwanssong]

You're theoretically correct but you seem to be intentionally dismissing the long list of penny stocks that have reverse split and the new high price of the stock 90% of the time tanks the first first days of the new 'high' price...im bullish this stock but ur wrong in terms of it having no effect, technically and fundamentally it doesnt, but the people who buy and sell the stock look at it differently, they dont like to see the new 'high' price...to them, going from .02 to .04 is a lot easier than going from 1 dollar to 2 dollar...even tho it is the same % jump.

[Renegades17]

It's really the fear of the aftermath



Most reverse splits are followed by repetitive, dilutive capital raises. Those capital raises are typically to raise money to keep the lights on, not for growth purposes.

I strongly believe that does not apply with IPSI. This company has a strong balance sheet thanks to raises done at much higher prices. The cash burn is small too.

I get the fear, but it's unwarranted in this case based on all available information.