Replies to post #161 on Reverse Split Round Up Share Plays

[koolmc]

yeah but you have to request the certificates then?

[53chevy]

Looks like you will net beer money. At $0.0012 pps, it will cost $20-25 to get in and out for a $70 ROI.

[emulwa]

Can you elaborate on that? Does one need to buy just one share?

[redrabbit]

It closed friday at .0009 after dropping like a rock. Monday it will probably continue to fall.

Best case scenario:

Buy 100 shares at .0009 for a fraction of a penny (+ transaction fee), sell after 1/600 r/s at a pps of .54 (assuming it does not go lower then .0009 and you get your shares back to dump before the .54 pps plummits) for $54.00 (- transaction fee)

Result: $54.00 - (2 x transaction fee) = roughly $34.00

(if you bought only one share you lose roughly $19.46)

Most likely scenario:

You buy 100 shares at .0002 monday for $.02, cause it continues to fall. After the r/s the pps is $1.20, you don't get your shares back to sell until after it has fallen to $1.00, you lose roughly $19.00 on transaction fees.

I'll pass....

[J T]

any idea what that " no certificate" means?

[Ruger20]

I wouldnt think you would have to buy 100, because it says
"no certificate of 100 shs or less will be reversed below 100.

But, I always buy enough so that I will have 1 share post split just so it stays in my positions and I dont have to deal with my broker telling me a whole line about fractional shares. Scottrade does not like to admit that round up plays happen even though they do