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cintrix

02/19/14 5:21 PM

#3439 RE: WealthMaster #3438

I assume the R/S have to be announced by the company weeks ahead of time to the shareholders (though I have to confirm this).

Nope, not true. If the stock is trading on the otc and they are a filing company they will first come out with a Pre14 alerting that they are requesting a reverse and then a 14 will follow announcing the reverse split. With stinky pinkies they can wing it on you any time. The only way is to watch that board I linked to you or to go to the daily list yourself everyday and watch it.

Another thing I hate about triple zero plays is the spread. I would only try buying on the bid which means you are not guaranteed a fill but if you buy on the ask, the spread between the two is risky. Say you buy a stock .0001 x .0002 at the ask. Let's say you hypothetically buy one million shares. You just gave them 200 bucks and if you need to sell it you lost 50% of your investment. When you trade a double zero stock, the spread isn't that large. Because there are more digits to the right, a stock could trade say at .001 x .0012 - you see the difference?