RE:RE:Reverse Split - Learn it, don't Fear itThe most beautiful thing with reverse split is the graph. When you look at the past, the graph gets inflated and prices become atrocious. Example : If Hexo peaked at 11$, and you do a 10:1 reverse split, theyll have peaked at 110$. Wow such a beauty. Peaked at 110$ and now at 10$. Its even mightier and more telling. And of course, the only positive splits are normal splits (Tesla, Apple, to name a couple). When you do a reverse split, its to stay away from being called a penny stock. When you do a normal split it reduces the price, allowing more people to purchase a single stock (For example Apple @500 vs Apple @100. The Canadian equivalent would be Couche-Tard, many many splits. If someone can name ONE great company that did a reverse split, id be amazed.
Quietinvestor wrote: Misleading post. Yes ACB went up to $26 but has since fallen to $7. Do your own DD. RS are generally not good for a stock. It shows weakness. "Generally, a reverse stock split is not perceived positively by market participants. It indicates that the stock price has gone to the bottom and that the company management is attempting to inflate the prices artificially without any real business proposition. Additionally, the liquidity may also take a toll with the number of shares getting reduced in the open market. "
GLTA