"So you agree, a REVERSE SPLIT is needed to get the outstanding shares in line with the market cap?"
Dude - a reverse split does NOTHING to a market cap.
Look ... it's like this (but much bigger, of course)
100 shares of a stock at $1 = $100 market cap. do a 1 for 2 reverse. Now, it is
50 shares of a stock at $2. Market cap?? Yep, the SAME $100.
A revers would change the number of shares outstanding, plus change the price. But has nothing to do with market cap.
ANother way to put it. What company is worth more in market cap. ONe at $2 or one at $5?
Well, if the one at $2 has 100 shares outstanding, that give it a market cap of $200. If the one at $5 has 30 shares outstanding, that gives it a makret cap of $150, or LESS than the $2 stock. Market cap is both sides. Shares times price. Changing the share with a split or reverse changes the price reversely, and the market cap remains the same.
A reverse can help a stock at times. Most of the time though it hurts. Better would be to keep earning positive earnings, expand the company, get the earnings even higher, than do a share buyback or a reverse that allows the stock to get to a new level of market. Not right now though. I see a reverse right now as a negative. And no, it would not increase OR decrease the market cap.
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