Holding or not, that's the question.
This fishy split has the intention of getting rid of shorts. It will very likely fulfill its purpose.
You will know that pennystock shorties have to come up with a $2.50 collateral for every shorted stock. That's a lot for a stock that trades below $1.50. After the split is effective this will be $12.50 per current stock. Not worth the trouble for most shorters, I believe. Most will cover their positions or are currently doing so. This is one reason the current price holds so well despite low volume. Remember, shorts are those guys buying when everybody else sits at the sidelines.
Will it be a noticeable short squeeze? That's possible. However, the risk for longs is that the price already collapses prior to the split. Once the short covering purchasing volume dries out, things can turn quickly. We'll see.
By the way, the split will be effective the week after next, from November 2nd, NOT next week.
Disclosure: I intend to sit short throughout the split and therefore loaded up my cash account with the necessary collateral. Will sit this out until the next financial reports will prove the weakness of this management team with a very special track record (not exactly in growing shareholder value, I may say).
Good luck to all, long or short!
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