OTCQX:BALMF - Post by User
Comment by
Chaulkduston Dec 27, 2018 4:03pm
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Post# 29161156
RE:This needs a fat reverse split ASAP.
RE:This needs a fat reverse split ASAP.If you are not aware BAR has been actively shorted. Reverse stock splits are usually a death sentence if done in desperation. If BAR had some really, really good news it could possible work if not the shareholders loss rate would just escalate. It’s already horrible for the long term guys that bought in years ago. See below quotes.
“Researchers at the Stern School of Business at NYU and Emory University looked at more than 40 years of data, from 1962 to 2001, and found that of the 1,600 reverse stock splits, shares underperformed their non-split peers by 15.6% in the first year following the split, 36% in the second year and 54% in the third year.”
“Shorters, who follow reverse stock splits and target those stocks, began to put pressure on the stock price, sending it tumbling. As selling pushed the price downward, other investors panicked and sold, causing the price to plummet even lower. As my friend discovered, a reverse stock split is normally not good news for shareholders.”