RE:RE:RE:RE:RE:Emails Replied toWhat I have posted below is directly from Zacks, the link is provided, if you disagree with the post you are essentially agruing with Zacks.
Any of the fundamentals, including EPS as well as Sales Ratios that tie to sharecounts will be changed to the positive with a reduced sharecount. The few shares / the higher the ratio the more the fundamentals improve.
Don't believe me... THEN
DO YOUR OWN DUE DILLIGENCE and run some numbers.
quinlash wrote: Here is a link to Zacks which confirms my post to be accurate.
Taken from Zacks EPS equals net earnings of the corporation divided by the number of shares outstanding. Because there are fewer shares after a reverse stock split but the earnings remain unchanged, the earnings per share increase. Assume the company earned $1 million and and has 1 million shares outstanding. EPS equals $1 million / 1 million, or $1. After 5-to-1 reverse split, the share count declines to 200,000. The new EPS is $5 ($1 million / 200,000). Hence, after a 5-to-1 reverse split, the EPS grows fivefold. In all reverse splits, the EPS multiplies by the split ratio. Link to Source https://finance.zacks.com/eps-increase-after-reverse-stock-split-6417.html quinlash wrote: the company has until July 25th at which point they can request an extension to 2023. Any consolidation, regardless of how big or how small, reduces the sharecount.
When the sharecount is reduced the probability of a EPS positive report is increased.
EPS = Earnings PER SHARE, less shares means it is easier to make that number positive.