Replies to post #411297 on Elite Pharmaceuticals Inc (ELTP)

[Just give me $1.50]

The stock would be even HIGHER if we were on the Nasdaq right now. THOUSANDS of people want to invest in Elite but CAN'T because their brokerages don't allow them to invest in OTC companies. EVERYONE is complaining on Reddit that they can't buy ELTP. Imagine if all of them that wanted to buy in, could buy in.

Most companies do reverse splits to STAY on the Nasdaq because they are FAILING as a company. Elite is the EXACT opposite. We are trying to GET on the Nasdaq because we are SUCCEEDING as a company.

I am confused why he would do a stock reverse when the shares are already organically going up? Isn’t it normally a sign a company is doing poorly if they have to do a stock reverse?

[NASDAQ2020]

Reverse splits are a sign of good things for companies on the way up, but a sign of bad things for companies on the way down.
In order to meet the minimum share price requirements for Nasdaq, many companies will conduct a reverse split. This is perfectly acceptable to the exchange, and the post-splitshare price will be evaluated accordingly.
Using a reverse split to raise the share price and obtain an uplisting is a very positive sign for a company and is much different than companies that use a reverse split to prevent being delisted. Once again, the confusion relates to delisting as opposed to uplisting. Novice investors who don't focus on uplistings only encounter reverse splits in the context of companies that are trying to stave off a delisting, so in many people's eyes a reverse split is a sign of a troubled company.



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