Absolutely not, the price of a stock many times has very little correlation to the underlying value of the company, much more to do with the technical factors underlying the market itself.
Just as you take a quote and look at the yearly high and low of a stock, then if you used the yearly high to value the company you get one price, and the yearly low, then it would be another price.
If they are 100% apart, then the company would be worth 50% less at the yearly low, than the yearly high? I don't think so... Especially if they are still reporting growth in revenues and profits... Market forces are in play.
So, in the case of DKAM, which is much closer to it's yearly low than yearly high... it's market cap has been bashed down by the constant barrage of negative publicity that paying down debt with shares and the final negative connotation of the reverse split has brought to the market cap valuation.
The company itself is worth far more than the market cap today, or tomorrow, after the split.
So, you choose a value you think the market cap should be, based on REVENUES, Revenue growth potential, Product line, debt, and PROFIT POTENTIAL, and you will see that the stock is still way undervalued just based on a 10 million dollar valuation, which would bring the post split price up to .33 per share.
It's simple really.
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