Quote:
Originally Posted by scho63
Reverse splits FAIL 95% of the time. They are NEGATIVE not positive.
Normal splits of 3:1 or 5:4 or 2:1 indicate a growing strong company.
Reverse splits are the OPPOSITE of forward splits and also the opposite in terms of success.
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This is correct. In sub 1.00 stocks it is usually done because the company is trying to avoid the Nasdaq delisting rule that you have to be above 1.00 for a certain amount of time. Usually a penny stock that is going to be diluted over and over and over again until it goes bust.
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“When war breaks out people say: 'It won't last, it's too stupid.' And war is certainly too stupid, but that doesn't prevent It from lasting.”
~Albert Camus, The Plague.
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