RE:NO REVERSE SPLIT IS POSITIVE FOR THE PUBLIC SHAREHOLDERS Invest2support wrote:
ANY OPINIONS?
Sure, this is one company that CAN use a split. Splits are not a bad thing, all it does is give you a different share of the pie. The shares that you have still have the same dollar value.
What it DOES do is reduce the size of the float, which makes price increases a hell of a lot easier and quicker.
Anyone who doesn't agree to this just go and check the Level 2 for Huge. Between .28 and .325 there are approximately 10 million shares on the ask. If you assume that the average price is .30 cents in that range, then you would need approximately $3 million dollars just to move up 4 cents.
As it moves higher, there will be walls at each and every level. Tens of millions of dollars would be needed just to get to .50, let alone $1, $2 and higher.
This float is not "retail investor" friendly. Without an RS and/or institutional money coming into this stock it will be extremely difficult for the share price to increase to a $1 and higher.