Replies to post #42749 on Zhong Nong Yuan Fang Holdings Inc (ANAS)

[Potse]

Stonewallet...reverse split possibility......

Really like the existing share structure, with only an 11 million share float. However, considering this share structure in combination with the news of ANAS bringing in MAS to facilitate an uplisting, wouldn't a R/S be the likely vehicle used to get the SP up to those levels....barring the release of some terrific announcement or financials, of course? That would certainly damper any enthusiasm. After many years of doing this, I've yet to see a R/S benefit my portfolio in the long run.

A reverse split on this stock is highly likely at some point. Nobody likes to see reverse splits, but is an almost unavoidable fact of life when dealing with shells, reverse mergers, or already-operating companies that are seeking to uplist to a higher exchange. Of the shells and operating companies I currently own, very few of them have a realistic chance at qualifying for an uplisting without the assistance of a reverse split.

So if I allow my dislike/fear of reverse splits to completely dominate my buying decisions, I am going to be left with a very small pool of stocks from which I can select. Plenty of shells or operating companies with less-than-ideal share structures and/or red flags manage to go on very nice runs. So if I limit my purchases to only the most perfect of situations, I am probably going to miss some pretty nice opportunities.

I don't know if this stock will turn out to be one of those opportunities, but I am willing to take a chance and find out. There are obvious catalysts approaching (good or bad), and market awareness of this stock is still relatively low. Should be interesting to see what happens.