RE:RE:RE:RE:RE:RE:RE:downside Stocks tend to lag the market after a reverse split — that’s not surprising if a reverse split signals that management thinks the stock will continue to decline.
However, it’s worth repeating: A reverse split is an effect of poor performance, not a cause. The stock often has already been on a long downtrend, and the reverse split is just a gimmick to keep the stock on the exchange or in investors’ hands, not a real operational repair of the business.
For investors, stock splits generally should be seen as a nonevent since they don’t increase the value of an investor’s holdings. However, some research indicates that forward stock splits signal management’s confidence in a stock’s rise, while reverse stock splits signal the continued decline of the business. That being said, reverse splits rarely come out of the blue; they typically follow months, if not years, of declining stock prices.
Doesn't seem like it's good