I'm aware of that. But what almost always happens after a RS is heavy selling. So RS brings the SP to $10.00, but it immediately gaps down to let's say $2. That kinda wipes out any current shareholder. The true wipeout, however, comes whenever the company dilutes AFTER the split. I'm still not selling my shares because I think long-term the business could work(and my position is barely worth anything anyway). But only people that get in at the right time after the split will make money.