RE:RE:RE:techtyStill have a bunch of EDV. Lucked out by staying in. It did go up as it had good producing mines and prospects. Another example I was involved with was Capital Gold a number of years ago. It did a 10:1 reverse split and price continued going up. Don't know if people remember that name? Capital Gold was later taken out.
Speculation to say that price will go down. If the company is making money and is sound financially, a reverse split will not necessarily mean price movement downward. If anything, you can get the price to a certain level that brings in buying from index funds. Many require a minimum price threshold. a price above-- say 3.00 would do alot in terms of making people more aware of the stock. Over 5.00 even better ! This will create a stronger floor for share price IMO.
I'd be all for it. As some have stated, the reverse split doesn't do anything to the financial metrics. It does though bring the price up. EDV and CGC (Capital Gold) are two perfect cases where a reverse split worked for gold companies. The examples above had positive cash flow, a languishing stock price for a couple of years as well as a group of shareholders who were very impatient for something to happen. Deja vu?? Reverse stock split?? Yes please !!! The share count alone in ROXG will scare many away. Put some lipstick on this pig as I feel it needs a slight makeover then it gets sold for a 30% premium over the 52 wk high is my prediction.
good luck all,
sb