Isodiol International Inc ISOLF

RE:RE:ISOL, a most mesmerizing stock.

[JeremyBauherk]

It is only under the false pretense of being worthy of the big leagues do penny stocks such as ISOL undertake a R/S that takes them, as in this case,  from .33 to 3.30 only to be so very terribly inclined to eventually find their way back under $1. Another classic example is FuelCell Energy (FCEL). From .80 to 9.80 on a 1 for 12 R/S in Dec. 2015 and almost three years later, this October, it makes its way back to as low as .73.

Very few are ever worthy contenders for a reverse stock split. FCEL and ISOL were not worthy of a R/S and it all comes down to neither of them having had a plan in place to make it so they maintained a hold on their post R/S pps and went on to add to it. As would be expected, like bees to honey, penny stock companies find their way back to where they are destined to be.

A penny stock reverse stock split is most often a fiasco that only serves the needs of a company's management that reduces the outstanding shares during the R/S process but is quick to offer up new shares at the post R/S pps, thus diluting its value and forcing the pps lower as it adjusts.

In such a case, they do indeed inevitably wither away once more to under $1.

Short traders are always in tune to these kinds of penny stock reverse stock split fiascoes and most often serves them well. 

I might not be brave enough to short a stock after a R/S, or at any other time for that matter, but as far as my position regarding them, I stand firm when I state....

...once a penny stock, always a penny stock.