If R/S causes stock to drop it may still rocket up So lets say a reverse split happens..... 1/100
EXAMPLE:
Current: 100,000 shares @ .05 cents share = $5,000
After R/V: 1000 shares @ $5.00 = $5,000
Then maybe....the stock drops to half = $2.50 share = $2500
So you are totally bummed...but.....
THEN...stock finally goes up 10 times or more as all the STRONG BUY analysts predict
$2500 x 10 times stock increase = $25,000 (= profit of $20,000 on initial investment)
Of course if the analysts predicting an increase 10x or even more and all the corporate buyers that are loading up right now are wrong...then you lose....but IMO its still good to stay in and load up at such a low price.
It does mean holding long and handling the stress of a possible big drop - risky but big payoff if it does what the analysts say it will
PS All the bashers writing on this stock...I agree, they are only writing as they want to buy ....why else would they spend the time to write