But isn’t that a good thing?! The only way a reverse split is bad is if you do it and fail. But that means you were going to fail anyway. I think going from $100 a share to $1,000 prices you out of the market. But from a penny to a dollar prices you into it.
What I mean is. If you have 10,000 shares worth $100. Or 100 shares worth $100. The value is the same. A pound of gold or a pound of feathers, which one weighs more? But at a dollar a share (100=$100), you can start to attract institutional investors. Or maybe a family fund. So 10,000 = $100. And 100 = $100. Are not the same thing. My 7 year old would say 10,000 shares are better than 100. Just like he thinks a race car will fall off a cliff faster than a stone. But 100 = $100, means fund managers, registered investors, family funds could come sniffing around. And move $10,000,000, $30,000,000, for some of them $50,000,000 isn’t even that much. That would place so much pressure on the buy side they would drive the share price up 20x. Fully discounting momentum which would probably cause a short squeeze and FOMO and actually move the SP 40x. It is a power play towards real money. Unless the product and company suck. Then at any share price you have nothing. All you are betting on is if the snake oil sales man can nudge $300,000 off the sidelines and time the retreat right.
So to all of the retail investors on here. Does a race car fall off a cliff faster than a stone… My 7 year old wants to find out really badly tomorrow!
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