reverse splits - good or bad
DESCRIPTION
Reverse Stock Splits -- Are reverse splits good or bad for the stock price ?TRANSCRIPT
www.reverse-merger-shell.com
Reverse Splits Good or Bad?
www.reverse-merger-shell.com
Disclaimer:
This is not legal or investment advice of any kind.
You are on your own.
These types of stocks are VERY risky.
You could easily lose all your money.
www.reverse-merger-shell.com
How do Reverse Splits affect stock price ?
www.reverse-merger-shell.com
We are going to do a series of articles on reverse stock splits -- what happens to the stock price and a series of legal and IR tips for companies that want to do them, so be sure to subscribe because you will not want to miss this vital information.
www.reverse-merger-shell.com
Knowing how reverse splits
affect stock prices is vital.
www.reverse-merger-shell.com
It is important to
companies contemplating
reverse splits
to know what might happen
to their stock price.
www.reverse-merger-shell.com
It is important to stock traders and investors to know what will happen to
the price of the stock after the announcement and in the longer term.
www.reverse-merger-shell.com
It seems to be a matter of general knowledge among stock professionals
that a small cap stock that does a reverse split will see its stock decline to the price that the stock started at.
www.reverse-merger-shell.com
In other words, if the stock was trading at five cents and did a one for ten reverse split, it should sell at fifty
cents, but the theory is that the stock will eventually go back to five cents.
www.reverse-merger-shell.com
If true, this would show management the futility of reverse splits, and would show traders a way to select stocks to
short or to sell.
www.reverse-merger-shell.com
We examine this hypothesis here by looking at some stock price charts.
www.reverse-merger-shell.com
SMTP reverse split of five to one announced on
January 3, 2014.
www.reverse-merger-shell.com
OWOO reverse split of 750 to one
January 2014.
www.reverse-merger-shell.com
DSNY reverse split of five to one was
announced January 8, 2014
www.reverse-merger-shell.com
GNCP denies wanted a reverse split on January 10, 2014. The stock goes up in March, then declines.
www.reverse-merger-shell.com
HRTX split of 20 to one announced
on January 14, 2014. The stock moves up, then
declines
www.reverse-merger-shell.com
TBIO reverse split announced
January 16, 2014.
www.reverse-merger-shell.com
HBRM reverse split announced on January 27, 2014.
www.reverse-merger-shell.com
DARA reverse split of five to
one announced on February 6, 2014.
The rest is a decline.
www.reverse-merger-shell.com
MYOS reverse split of 50 to one
announced February 10,
2014.
Stock goes up.
www.reverse-merger-shell.com
MDHI reverse split announced
February 20, 2014.
Stock is soft.
www.reverse-merger-shell.com
COOL reverse split was announced in June 2014. Large decline follows.
www.reverse-merger-shell.com
DJAK reverse split of 20 for one was announced on February 20. 2014.
www.reverse-merger-shell.com
GARB canceled a reverse split on
February 20, 2014.
www.reverse-merger-shell.com
TRXC reverse split of five to one was announced on April 1, 2014.
Sharp drop, then sideways.
www.reverse-merger-shell.com
PPRTF reverse split of two for one announced on April 2, 2104, followed by decline.
www.reverse-merger-shell.com
CGCC reverse split of 20 to one was
announced on April 4, 2014.
www.reverse-merger-shell.com
GNUS reverse split announced
on April 7, 2014. Stock shows
signs of life but moves down over
time.
www.reverse-merger-shell.com
It seems to me to be fair to conclude as follows:
In low priced, speculative stocks, the announcement of a reverse split is usually short term negative for the
price. Stocks with reverse splits usually decline over time.
www.reverse-merger-shell.com
More Coming
We are going to go deeper into this subject in the future. Subscribe
because you do not want to miss what new and surprising information is
coming.
www.reverse-merger-shell.com
Subscribe here on YouTube for more free videos and let me know what else you would like to see.
www.reverse-merger-shell.com
For more on securities law,
email me at John.Lux @ Securities-Law. Info
Or call me at (240) 200-4529
www.reverse-merger-shell.com
Buy my books
on Amazon.com