RE:RE:RE:Reverse 1:7Once the Reverse split happens the existing shareholder will have to wait who knows how long to see their initial investment come back to them. Lets say for arguement sake the RSS occurs when the stock is at $2 cents which means the stock price will be 14 cents but your total of number of shares are then divided by 7 which will mean that the stock will have to go up 7 times from your original purchase or average down price.
Here below is an example:
Original price was 7 cents and you owned 21,000 shares at a cost of $1470.00 plus commission to buy.
RSS @ 2 cents 1 for 7 split now leaves you 3000 which would mean you will need the share price to rise to 49 cents just to loose the commission cost for buy/sell.
They have nothing that will get the share price to 49 cents which means the stock price will basically drop back to some level and it could enbd up back to the exact level where the split started.
Basically this is NOW JUNK STATUS.